03:41 AM EDT, 04/21/2026 (MT Newswires) -- RBC Capital Markets downgraded SKF's (SKF-A.ST, SKF-B.ST) rating and price target after evaluating the Swedish bearings, seals and lubrication systems company's historical performance as analysts took note of its new targets.

"Based on our analysis of organic growth, margin performance (also vs peers), EPS and [free cash flow], SKF has in fact stagnated for the past 10 years. The view in the rear-view mirror is particularly relevant for SKF, because the 2025 [capital markets day] presented new, aggressive performance targets, which investors might want to scrutinise. We also note that the new targets are again based on an 'adjusted operating margin,'which is a main performance metric for management, while 'reported margin'and 'FCF'are not. This opens the door for larger 'recurring one-off charges'that unduly inflate adjusted margins,"analysts said Monday.

The group's latest long-term financial targets include an organic growth outlook of 4% and an adjusted operating margin of more than 17% in the medium term and 19% in the long term. These goals account for the separation of its automotive business, which the research firm said is the "most recent [misstep]"by the company.

Against this backdrop, RBC lowered SKF's rating to sector perform from outperform and price target to 235 kronor from 240 kronor. "We conclude that SKF's new l/t targets (presented at the 2025 CMD) should be taken with great caution,"the research firm wrote.

Analysts at RBC also curbed their 2026 to 2027 forecasts by 3% to 7% amid rising input costs and spin-off dissynergy risks. With "high"one-off expenses, the research firm expects "soft"EPS and FCF performance within the same period, leaving its 2027 estimates between 10% and 14% below consensus.