Report
Olof Larshammar
EUR 466.12 For Business Accounts Only

SKF (Buy, TP: SEK210.00) - It’s not all about demand

We expect SKF to continue to generate good cash flow and beat consensus. We are 9% above consensus on 2020e EBIT, as we expect cost-savings, pricing to remain positive, and raw-material cost inflation to wane from 2020e. We believe Q4 provided more evidence that SKF is better positioned to handle declining volumes than in the past. Trading at a 4% discount to its historical EV/sales, we see value and reiterate our BUY and SEK210 target price.
Underlying
SKF AB Class B

AB SKF is the parent company of the SKF Group, which supplies products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems. Services include technical support, maintenance services, condition monitoring, asset optimization, engineering consultancy and training. Co.'s business areas are: SKF Industrial Market - Strategic Industries, which includes bearings and bearing accessories and lubrication systems; SKF Industrial Market - Regional Sales and Service, which develops SKF Solution Factory facilities providing engineering capability; and SKF Automotive, which develops and manufactures bearings, seals and related products and services.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Olof Larshammar

Other Reports on these Companies
Other Reports from DnB Markets

ResearchPool Subscriptions

Get the most out of your insights

Get in touch