SKF AB Stock (SE0000108227): Handelsbanken reiterates Buy rating and SEK 290 target

Swedish bank Handelsbanken has reaffirmed its Buy rating and SEK 290 price target on SKF AB, calling the current valuation attractive compared with peers as the shares lag the sector.

Responsible: ad hoc news Stocks & Analysis Desk. Reviewed prior to publication on June 16, 2026 at 7:23 PM ET. Details in the imprint.

SKF AB is back in focus after Swedish bank Handelsbanken reiterated its Buy recommendation on the shares and confirmed a price target of SEK 290, arguing that the current valuation does not reflect the companys earnings power. Handelsbanken notes that SKF has underperformed its sector, a weakness the analysts view as unjustified given the companys prospects and balance sheet. According to the same analysis, the stock trades at roughly 9.3 times expected 2027 EV/EBIT, a level the bank describes as attractive relative to peers in the industrials space. For U.S. investors looking at European industrial suppliers alongside large U.S.-listed names, the call highlights SKF as a value-oriented play within the broader bearings and motion solutions market.

Handelsbanken's SEK 290 target and what it implies for SKF AB

In its latest research update, Handelsbanken reaffirms a Buy rating on SKF and keeps its 12-month price target at SEK 290, signaling confidence in the companys medium-term earnings trajectory despite the recent share price underperformance. The bank explicitly points out that SKF has performed weakly versus its sector benchmark, but attributes this mainly to market sentiment rather than to any fundamental deterioration in the business. By calling the underperformance "unjustified", the analysts effectively argue that current market pricing underestimates SKF's capacity to expand margins and generate cash flow over the next few years. While the note is published in Swedish and focuses on Nordic investors, the valuation arguments apply equally to global shareholders, including U.S.-based investors accessing SKF through European trading venues.

Handelsbanken underlines that, based on its model, SKF trades at around 9.3x EV/EBIT on projected 2027 results, a discount to the typical mid-teens multiples often seen for quality industrial component manufacturers with solid balance sheets and diversified customer bases. EV/EBIT, which compares a companys enterprise value with its operating profit, is a commonly used metric in industrials analysis because it neutralizes differences in capital structure and tax environments across markets. A single-digit EV/EBIT multiple on outer-year earnings can indicate either a deeply cyclical profile with high uncertainty or, as Handelsbanken argues here, a potential mispricing if end-market demand and operational execution remain broadly intact. For SKF, the analysts appear to lean toward the second interpretation, implying a gap between current market expectations and what they see as achievable profitability by 2027.

The reaffirmed SEK 290 target also provides an anchor point for how one regional bank views SKFs risk-reward profile relative to the Nordic industrial universe. Although precise current trading levels are not provided in the research summary, the mention that SKF has lagged the sector suggests that upside to the target remains material from recent price points. For context, SKF is a global supplier of bearings, seals and related technologies, and its fortunes are tied to industrial production, transportation, and energy investment cycles worldwide. When a bank such as Handelsbanken highlights a valuation gap versus peers, it is typically weighing these macro exposures against company-specific initiatives such as cost efficiency, portfolio optimization, and capital allocation.

Handelsbanken's commentary further emphasizes that SKF's relative weakness is not backed by any dramatic change in its competitive position, but rather reflects broader risk-off sentiment in parts of the industrial sector. In such environments, investors often favor larger, more diversified U.S. industrial names, which can temporarily depress multiples for European peers even when order books and operational metrics remain resilient. Against that backdrop, calling SKF's valuation "attractive" at around 9.3x expected 2027 EV/EBIT suggests that the bank views current pricing as embedding conservative assumptions about both margins and growth. That stance is particularly relevant for investors who compare European and U.S.-listed industrials side by side, as differences in regional risk premia can create pockets of relative value.

The report also implicitly touches on the competitive landscape in bearings and motion solutions, where SKF competes with global players supplying industries such as automotive, aerospace, renewable energy and heavy machinery. Even though the Handelsbanken summary does not list specific peers, the reference to sector underperformance indicates that the bank is benchmarking SKF against a broader group of industrial technology firms rather than judging it in isolation. For equity analysts, this type of peer-relative assessment is central when setting price targets, since it anchors valuation not only in standalone forecasts but also in how the market prices comparable business models, cyclicality profiles and balance sheet strength. The confirmation of a Buy rating signals that, within that framework, Handelsbanken still sees SKF as positioned favorably.

From a risk perspective, the research note implicitly acknowledges that SKF remains exposed to swings in global manufacturing activity, capital spending trends and FX moves, all of which can affect margins and order intake. However, the decision to reiterate a Buy rating rather than move to a more neutral stance suggests that Handelsbanken does not view these headwinds as sufficient to derail its medium-term earnings expectations. In practice, this means the analysts likely assume at least a stable-to-improving backdrop in key end markets by 2027, with SKF able to defend or expand margins through operational levers and potential pricing initiatives. While the note itself does not provide a detailed scenario breakdown in the summary, the target and multiple cited give a high-level picture of those underlying assumptions.

For investors who follow Nordic equities from the U.S., Handelsbanken's call serves as a datapoint indicating that local institutional research still sees upside in SKF despite the stocks weaker run relative to the sector. Research from regional banks can be especially informative where domestic exposure and on-the-ground industry knowledge offer an additional vantage point on a companys supply chain, labor market conditions and customer base. The SEK 290 target also provides a reference level that can be incorporated into broader consensus valuation work, even if other brokers may use different assumptions or time horizons. Monitoring how such targets evolve over time can reveal whether analysts are gaining or losing conviction as new quarterly data emerges.

Overall, the reaffirmed Buy rating and valuation commentary from Handelsbanken place SKF among the industrial names where at least one major Nordic bank believes the market is underestimating medium-term earnings potential. For investors already following SKF, the note is primarily a confirmation signal rather than a fresh catalyst, but it does crystallize the argument that current pricing embeds a discount to peer valuations. Investors watching the stock may therefore weigh Handelsbanken's valuation framework and sector-relative points against their own macro views and risk tolerance, particularly when comparing SKF with large U.S. industrial and capital goods stocks.

Looking ahead, sentiment on SKF will likely continue to react to macro indicators tied to global manufacturing and capital expenditures, as well as to the companys quarterly reports and any strategic updates published on its investor relations site at SKF. While Handelsbanken's SEK 290 target and 9.3x 2027 EV/EBIT view provide a structured lens on valuation today, the durability of that thesis will hinge on SKF's ability to execute operationally through the cycle and maintain competitive positioning across its core markets. As always, the interaction of company-specific performance with wider sector trends on indices such as Stockholms OMXS30 will help determine how much of the highlighted value gap, if any, ultimately closes over time.

SKF AB at a glance

• Name: SKF AB
• Industry: Bearings, seals and industrial motion solutions
• Headquarters: Gothenburg, Sweden
• Core markets: Global industrial, automotive, transportation, energy and machinery sectors
• Revenue drivers: Bearings, sealing solutions, lubrication systems and related services for OEMs and industrial end users
• Listing: Primary listing on Nasdaq Stockholm; additional trading available in Frankfurt under ticker SKFB
• Trading currency: Swedish krona (SEK) on Nasdaq Stockholm; euro (EUR) on Frankfurt

This article was created with a.i. assistance and editorially reviewed. Not investment advice, not a buy or sell recommendation. Trading in securities carries risks up to the total loss of capital.