GS double-upgrades Hydro on Middle East supply shock benefits

Norsk Hydro ASA

07/04/2026 08:49

** Goldman Sachs double-upgrades Norwegian aluminium producer Norsk Hydro NHY.OL to "buy" from "sell," expecting the conflict in the Middle East to create upside for value-added products (VAPs)

** The broker expects the "material supply shock" induced by the conflict to disproportionately benefit the firm as a top producer of processed aluminium

** Hydro is one of the largest integrated VAP producers, with about 70-75% of the metal undergoing further processing, GS notes

** While downstream demand remains challenged, higher pricing could accelerate demand destruction against a slowing gross domestic product growth scenario, the broker adds

** Hydro shares were up 4.1% at 0725 GMT

** Out of the 21 analysts covering the stock, nine rate it "strong buy"/"buy", six "hold" and six "sell"/"strong sell" - LSEG data

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))