SKF (Buy, TP: SEK290.00) - Forecasts lifted
We expect SKF to continue to beat consensus. We have lifted our 2021–2023e adj EBIT by 2–4% and are 10% above Q1 adj EBIT consensus. SKF is well-placed for the transition to EV cars and, in our view, has relatively favourable end-market exposure. We expect costs to continue to decline due to structural measures and our 2021–2022 adj EBIT is 6–9% above consensus. We reiterate our BUY and have raised our target price to SEK290 (270).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.
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.
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