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.
  • TickerSKF B
  • ISINSE0000108227
  • ExchangeNasdaq Nordic Stockholm
  • SectorIndustrial Engineering
  • CountrySweden

Analysts

Anders Idborg ...
  • Karl Bokvist
  • Olof Cederholm

Powerpoint Sector Report - The Capital Goods Data Miner – November 2019

Q3 reports held up better than expected and the sector rallied 15% over the results season. At the same time, demand indicators continue to be mostly negative and point to further pressure on estimates for 2020 (particularly if currency support would wane). We favour names with company-specific drivers and valuation support, and continue to be cautious on unusually expensive low-beta names. Our key long ideas are: Alfa Laval, Electrolux, Metso, Nokian Tyres We are cautious on: Assa Abloy, Autoliv, Kone, Nibe

Christoffer Wang Bjørnsen ...
  • Frank Maaø
  • Joachim Gunell
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Hoang Nguyen
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Olof Larshammar

SKF (Buy, TP: SEK200.00) - On a cost-reduction roll

We expect SKF to continue to generate good cash flow and beat consensus in Q4 (we are 7% above on adj EBIT) and 2020 (10% above) despite a weak demand environment as cost savings assist, the price/mix remains positive, and raw materials cost inflation wanes from 2020e. We believe the Q3 report gave more evidence that SKF is better positioned to handle declining volumes than in the past. Trading at a 13% discount to its own historical EV/sales, we see plenty of value and reiterate our BUY and SEK200 target price.

Fredrik Ivarsson ...
  • Jan Erik Gjerland
  • Jannick Lindegaard Denholt
  • Karl Bokvist
  • Karl Fredrik Schjøtt-Pedersen
  • Ludvig Kapanen
  • Mads Thinggaard
  • Martin Melbye
  • Olof Cederholm
  • Peter Kurt Nielsen

Talking Points - ICA Group (Sell): Weakening momentum

Coloplast (Hold) Preview of results: GPO update and 2019/20 guidance in focus …but momentum set to weaken Downgrade to SELL (Hold)

Anders Idborg ...
  • Olof Cederholm

SKF - Cost savings support earnings

Solid Q3 helped by cost savings Estimates left roughly unchanged, HOLD reiterated New TP 175 (160) on raised target multiple

SKF AB: Annual Update

CORPORATES CREDIT OPINION 9 February 2017 Update RATINGS SKF AB Domicile Sweden Long Term Rating Baa2 Type Senior Unsecured - Fgn Curr Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Oliver Giani 49-69-70730-722

Anders Idborg ...
  • Karl Bokvist
  • Olof Cederholm

Powerpoint Sector Report - The Capital Goods Data Miner – November 2019

Q3 reports held up better than expected and the sector rallied 15% over the results season. At the same time, demand indicators continue to be mostly negative and point to further pressure on estimates for 2020 (particularly if currency support would wane). We favour names with company-specific drivers and valuation support, and continue to be cautious on unusually expensive low-beta names. Our key long ideas are: Alfa Laval, Electrolux, Metso, Nokian Tyres We are cautious on: Assa Abloy, Autoliv, Kone, Nibe

Olof Larshammar

SKF (Buy, TP: SEK200.00) - On a cost-reduction roll

We expect SKF to continue to generate good cash flow and beat consensus in Q4 (we are 7% above on adj EBIT) and 2020 (10% above) despite a weak demand environment as cost savings assist, the price/mix remains positive, and raw materials cost inflation wanes from 2020e. We believe the Q3 report gave more evidence that SKF is better positioned to handle declining volumes than in the past. Trading at a 13% discount to its own historical EV/sales, we see plenty of value and reiterate our BUY and SEK200 target price.

Fredrik Ivarsson ...
  • Jan Erik Gjerland
  • Jannick Lindegaard Denholt
  • Karl Bokvist
  • Karl Fredrik Schjøtt-Pedersen
  • Ludvig Kapanen
  • Mads Thinggaard
  • Martin Melbye
  • Olof Cederholm
  • Peter Kurt Nielsen

Talking Points - ICA Group (Sell): Weakening momentum

Coloplast (Hold) Preview of results: GPO update and 2019/20 guidance in focus …but momentum set to weaken Downgrade to SELL (Hold)

Anders Idborg ...
  • Olof Cederholm

SKF - Cost savings support earnings

Solid Q3 helped by cost savings Estimates left roughly unchanged, HOLD reiterated New TP 175 (160) on raised target multiple

Anders Idborg ...
  • Olof Cederholm

SKF - Stable Q3 with adj. EBIT slighlty better

Stable Q3, adj. EBIT slightly better Guides for “lower” Q4 demand, as expected Estimates should remain relatively unchanged

Christoffer Wang Bjørnsen ...
  • Frank Maaø
  • Joachim Gunell
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Hoang Nguyen
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Christer Magnergård ...
  • Jon Masdal
  • Martin Arnell
  • Martin Hoang Nguyen
  • Mattias Holmberg
  • Ole-Andreas Krohn
  • Olof Larshammar

Northern Lights

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Håkon Astrup
  • Jon Berggren
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Stefan Gauffin
  • Tomi Railo

Weak report across the board

Jesper Ingildsen ...
  • Joachim Gunell
  • Mattias Holmberg
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl

Northern Lights

Eivind Sars Veddeng ...
  • Joachim Gunell
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Marius Knudssøn
  • Martin Arnell
  • Martin Hoang Nguyen
  • Mattias Montgomery
  • Nicolai Farstad Olsen
  • Ole-Andreas Krohn
  • Olof Larshammar

Northern Lights

An increasingly favourable environment allows AB SKF to improve to Neutral

The independent financial analyst theScreener just upgraded the general evaluation of AB SKF (SE), a company active in the Industrial Machinery industry. As regards its fundamental valuation, the title confirms its rating of 3 out of 4 stars while its market behaviour remains as risky. theScreener believes, however, that a more enabling environment allows the title to increase its general evaluation to Neutral. As of the analysis date September 20, 2019, the closing price was SEK 167.10 and its expected value was estimated at SEK 160.09.

Ibrahim Firdaus
Ibrahim Firdaus
Ibrahim Firdaus
Ibrahim Firdaus
Expert Corporate Governance Service (ECGS)

SKF, March 28, 2019

In general, SKF is in compliance with the Swedish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEMS 14.1-14.9, the (re-)election of the board of directors is proposed. In light of insufficient independent representation on the board as well as concerns over aggregate time commitments, ECGS recommends to vote OPPOSE to the (re-)election  of: Mr. Hans Straberg (ITEM 14.1), Mr. Lars Wedenborn (ITEM 14.2), Ms. Nancy Gougarty (ITEM 14.5), Mr. Ronnie Leten (ITEM 14.6), Ms. Colleen Repplier (ITEM 14.8) and proposed new nominee Mr. Geert Follens (ITEM ...

SKF – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

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