Shares of Schaeffler declined following a UBS downgrade, driven by concerns over the company's valuation in the humanoid robotics sector. UBS moved from a neutral to a sell rating, citing that the recent rally in Schaeffler's stock, which has risen approximately 60% since October, was fueled by expectations around humanoid robots instead of core business developments.

UBS analysts believe the market is overestimating Schaeffler's humanoid business potential. They estimate the humanoid business to be worth roughly €1.6 billion, while the market values it at approximately €3 billion. Despite acknowledging Schaeffler's strategic positioning in this area, UBS expressed skepticism about the sustainability of current valuations, especially given the early stage of the technology.

Adding to the bearish outlook, UBS pointed to limited support from Schaeffler's core automotive business. They anticipate a decline in European vehicle production volumes and expect the E-Mobility division to remain unprofitable until 2028. This suggests the recent stock rally is almost entirely tied to the humanoid growth opportunity.

Looking ahead, investors should monitor Schaeffler’s progress in humanoid robotics, particularly its partnerships and internal deployments. The company's ability to navigate the challenges in its core automotive business will also be critical. The market will be watching to see if Schaeffler can justify its humanoid ambitions.