Deutsche Bank revised its target price for SKF (SKFb.ST) to SEK 290 from SEK 300, reflecting cautious sentiment amid global industrial demand uncertainties. The move highlights challenges in the bearings and industrial components sector, though analysts maintain a neutral stance on SKF’s long-term fundamentals.
In a fresh equity research update, Deutsche Bank has cut its target price for SKF (SKFb.ST) to SEK 290 from SEK 300, signaling a more cautious outlook for the Swedish industrial giant. The announcement, made on February 2, 2026, comes amid concerns over slowing global demand and margin pressures in the industrial components sector.
Key Highlights:
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Target price revision: Deutsche Bank lowered its target by SEK 10, reflecting near-term challenges in global manufacturing and supply chain dynamics.
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Sectoral headwinds: Analysts cited softening demand in Europe and Asia, coupled with currency fluctuations, as factors weighing on SKF’s earnings outlook.
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Operational resilience: Despite the downgrade, SKF continues to maintain strong positions in bearings, seals, and lubrication systems, with long-term demand expected from automotive and renewable energy sectors.
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Investor sentiment: The revision may prompt cautious trading in SKF shares, though the company’s diversified portfolio and innovation-driven strategy remain supportive of long-term growth.
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Market relevance: SKF’s performance is often seen as a barometer for global industrial activity, making the target cut significant for broader sector sentiment.
Outlook:
While near-term challenges persist, analysts believe SKF’s focus on sustainability, digitalization, and advanced manufacturing could help offset cyclical pressures.
Sources: Reuters, Bloomberg Markets, Economic Times Global, Mint Business