SKF: Liberum raises target price after third-quarter results
(CercleFinance.com) - Liberum has raised its target price on Swedish bearings maker SKF from 210 Swedish kronor to 220 Swedish kronor, while maintaining a "buy" rating on the shares.
The British investment bank points out that, in sharp contrast to the consensus, Q3 results beat estimates, first due to price/mix stabilising versus the drop that was expected.
The CEO's latest comments suggest price increases are ahead, compared to zero price growth expected previously, Liberum adds.
In short, the 11.3% full-year 2018 consensus margin looks unrealistic, given the acceleration in price, volume and stronger leverage, boosted by the CEO's comments suggesting production increases ahead, it says.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The British investment bank points out that, in sharp contrast to the consensus, Q3 results beat estimates, first due to price/mix stabilising versus the drop that was expected.
The CEO's latest comments suggest price increases are ahead, compared to zero price growth expected previously, Liberum adds.
In short, the 11.3% full-year 2018 consensus margin looks unrealistic, given the acceleration in price, volume and stronger leverage, boosted by the CEO's comments suggesting production increases ahead, it says.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.