Jefferies cuts SKF on 'too optimistic' growth forecasts, costs of planned split

SKF AB

26/01/2026 08:12

** Jefferies downgrades Swedish bearing and seal maker SKF SKFb.ST to "underperform" from "hold", citing the market's overly optimistic growth forecasts and margin pressure from the planned automotive unit spin-off

** The broker says the European recovery trade is set to disappoint, noting manufacturing PMIs still signal contraction with no signs of a rebound in industrial production

** Consequently, it forecasts just 2% organic revenue growth for fiscal 2026, which is 2 pp below current consensus

** The broker adds the auto spin-off, expected later this year, will "come with immediate costs", and it will take two years for the industrial division to recover to pre-split profitability levels

** Jefferies cuts SKF's PT by 7% to SEK 205, vs Friday's close of SEK 251 per share

** Out of 19 analysts that cover SKF, eight rate it "strong buy" or "buy", ​eight "hold" and three​ "strong sell" or "sell" - LSEG data

** Shares of SKF fall 1.4% in early trading

(Reporting by Agnieszka Olenska)

((Agnieszka.olenska@thomsonreuters.com))