Goldman Sachs downgraded SKF to sell from buy, citing weak growth prospects and margin pressures. The bank sees 5% downside to its new target of SEK 237, reflecting concerns over SKF’s competitive position and valuation.

The brokerage forecasts organic sales growth of 4.5% through 2028, lagging behind the European capital goods sector’s expected 7-8% pace. SKF lacks strong exposure to high-growth areas like data centers and semiconductors, limiting upside potential.

Goldman Sachs also flagged rising tariff and currency risks, expecting them to outweigh cost savings in 2026. Broader competitive threats from Chinese bearing manufacturers add pressure. The downgrade isn’t tied to near-term earnings but reflects structural headwinds.

Investors should watch SKF’s upcoming Q4 results on Jan. 30 for any signs of resilience. However, with consensus earnings estimates likely to fall due to external factors, share price momentum may remain challenged through 2026.