Citi raises its target price for industrial group SKF to SEK 280 from SEK 270 and repeats its Neutral recommendation.
The bank expects adjusted operating profit of SEK 2,762 million in the third quarter, in line with consensus. The margin is expected to come in at 15.8 percent, supported by positive currency effects. SKF is expected to guide for growth of more than 4 percent in the fourth quarter, but the market is already expecting 4.5 percent.
Citi believes the market’s margin forecasts for the fourth quarter and 2027 are too high and sees better risk-reward elsewhere.
