JPM resumes SKF on 'neutral' until it finds its bearings

SKF AB

04/12/2025 12:56

** J.P.Morgan resumes Swedish industrial bearings maker SKF SKFb.ST at "neutral", saying it is supportive of the firm's transformation but sees a balanced outlook

** The broker notes the company is "finding its bearings" after depressed volumes but expects margins to pick up "strongly" as volumes recover

** SKF's capital markets day brought more clarity on the spin off of its Automotive division and its costs

** "While these costs were much higher than anticipated, expectations have now been reset," JPM says

** JPM is positive on SKF's transformation, but says it will "remain on the sidelines for now, until we see a better entry point or signs of an inflection"

** The firm's valuation is "not outright cheap", with its current premium to the sector justified but not offering an attractive entry point, the broker adds

** Out of 19 analysts covering the stock, 11 rate it "strong buy" or "buy", and eight rate it "hold" - LSEG

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))