JPM cuts SKF on 'unhelpful overhang' from spin-off delay

SKF AB

04/02/2026 10:54

** J.P.Morgan cuts SKF SKFb.ST to "underweight" from "neutral", citing the "unhelpful overhang" from the delay in the Swedish bearing maker's Automotive unit spin-off

** The spin-off delay to Q4 2026 from mid-2026 prolongs SKF's exposure to the muted automotive market, says JPM

** It also notes that the company has about 28% exposure to the automotive market, higher than the 3% sector average

** Margin risks are also growing, the firm adds, highlighting challenges from separation dis-synergies, adverse currency effects, tariff risks, and rising steel prices

** JPM believes these factors will offset benefits from higher volumes, as "auto listing delays the investment case" and distracts from the strategy for SKF's Industrial unit

** Out of the 19 analysts covering the stock, eight rate it "strong buy"/"buy", seven "hold" and four "sell"/"strong sell" - LSEG data

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))