Norsk Hydro (Sell, TP: NOK55.00) - Downside risk for aluminium prices
We expect EBITDA of NOK8.5bn, boosted by high alumina prices. We reiterate our SELL and NOK55 target price, as we believe aluminium prices of USD~2,700/t have been driven higher by speculation rather than fundamentals. Prices are inflated by high alumina prices, which should come down as more supply enters the market. Furthermore, we believe higher copper prices will not lead to higher aluminium prices for much longer, as the two metal prices do not share fundamentals. We have raised our 2025e EPS by 13% to account for higher alumina prices in Q1.Norsk Hydro is an aluminium group based in Norway. Co. is engaged in the supply of aluminium and aluminium products. Co. supplies casthouse products, such as extrusion ingots, sheet ingots and foundry alloys. Co's customers are active in sectors such as the packaging, lithographic, building, automotive and transport sectors. In addition, Co. is engaged in the production of power in Norway. Its business is divided into six operating segments: Bauxite & Alumina, Primary Metal, Metal Markets, Rolled Products, and Energy and Other and Eliminations.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.