Barclays prefers SKF over Trelleborg on better profitability expectations

Trelleborg AB

11/03/2024 10:34

** Barclays ups SKF  SKFb.ST  while cuts Trelleborg
 TRELb.ST , saying the expectation of a modest macro recovery in
2024 already aided capital goods' share price performances, and
faster-than-expected recovery could drive share prices further
    ** The brokerage says the share of short-cycle capital goods
have had a good run since Q4 2023, in line with the market
    ** It downgrades Trelleborg to "equal-weight" from
"overweight", saying the stock will likely take a breather after
reaching the brokerage's price target (TP SEK376)
    ** "Nonetheless, we remain positive long term on the
company," it adds
    ** SKF is double-upgraded to "overweight" from "underweight"
on better profitability suggested by PPI movement and more
compelling valuation
    ** Better pricing environment should help the group's
adjusted EBIT to return to positive growth in H2, with longer
term profitability helped by regional footprint optimisation, it
adds

 (Reporting by Jagoda Darlak)
 ((Jagoda.Darlak@thomsonreuters.com; +48 58 769 65 40;))