SKF Growth Could Accelerate Slightly on Strong Manufacturing Backdrop

Dow Jones
08/17

0549 GMT - Swedish ball-bearing maker SKF's organic growth could accelerate to around 4% year-on-year in the second half of the year, from 2% in the first half, supported by a strong global manufacturing backdrop, RBC Capital Markets analyst Sebastian Kuenne writes. "We now see that the latest manufacturing data are improving further and this should allow for some acceleration in bearings/component demand, which could stretch beyond H2 and even into 2027." The bank expects 4%-5% organic growth in 2027. RBC said it sees increased pricing potential, which should allow SKF to pass on cost increases and allow for further margin improvement next year. It raises its price target on the stockto 270 Swedish kronor from 250 kronor and retains its sector perform rating. Shares closed at 261.80 kronor.

 

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