Barclays has adjusted its outlook on SKF AB (SKFRY, Financial), reducing its rating to Equal Weight from a previous Overweight. The price target has similarly been lowered to SEK 193 from SEK 250. This shift reflects broader concerns in the European capital goods sector.
Analysts at Barclays predict that companies with shorter business cycles, such as SKF AB, will quickly encounter challenges due to the impact of tariffs. Unlike past economic downturns, the anticipated recovery is not expected to follow a quick "V" shape. Instead, the environment for this sector remains challenging.
Global industrial activity continues to show limited growth, and capital expenditure remains stagnant outside of increasing investments in large-scale data centers. Additionally, political developments, such as those initiated by President Trump's policies, could further impact the sector, compounding existing difficulties.
