Profitability ChallengesEBIT is a 10% miss, driven by a weaker-than-expected B&IS, where margins declined 430bps sequentially.
Sector CompetitionThe results are set against a backdrop of more upbeat updates in the auto supplier sector over the past few weeks, which may negatively impact Schaeffler's stock performance.
Valuation ConcernsThe stock is trading at premiums to EU peers, which could lead to a downward adjustment in share price.