Kepler upgrades SKF to 'buy', expects volumes to rebound
22/11/2024 10:09
** Kepler-Cheuvreux raises SKF SKFb.ST to "buy" from "reduce",
expecting recovery in the Swedish bearing manufacturer's
volumes despite weak markets and high investments
** "We see growth bottoming out in the near term and as
volumes recover in 2025, so should margins," the broker says
** Weak demand in China and in the automotive industry forced
SKF to lower its sales guidance in October
** Kepler says SKF's automotive business spinoff decision in
H1 2026 should give both entities up to 10% annual scope to
start buybacks
** It adds the group's valuation is at historically low
levels, and increases its PT to SEK 240 from SEK 200
(Reporting by Vera Dvorakova)
((mailto:vera.dvorakova@thomsonreuters.com))