SKF (Hold, TP: SEK160.00) - Price versus costs gap still growing
We reiterate our HOLD and SEK160 target price after cutting our 2022e adj. EBIT by 5% while 2023–2024e is roughly unchanged, albeit still 6–7% below consensus. The bright spots of solid Q4 and 2022 organic growth guidance (driven by price) were overshadowed by SKF’s weak profitability as it still struggles to offset rapid cost inflation. Although we believe the net price/cost headwind could have peaked in Q3, and the company has initiated a new cost-savings programme, we expect a YOY decline in 2023 adj. EBIT.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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.