SKF “designs and manufactures bearings, seals, and lubrication systems for the mining, heavy industry, construction, agriculture, and transportation industries.”
SKF, the world’s largest maker of ball bearings, is well diversified. The business has been revamped in the past five years, and SKF has developed new technology that remotely monitors and services wind-farm and railway equipment to avoid costly repairs.
Comp to Timken ($TKR) trading at < 12x earnings
Sebastian Kuenne, an analyst at RBC Capital Markets, has an Outperform rating and a price target of SEK300. SKF is an “exceptionally attractive investment” because shares trade at only 12 times estimated 2021 earnings, despite 70% exposure to a “high-margin and robust industrial end market.”
SKF 2021 results and long-term targets