RBC ups Hydro to 'outperform' on aluminium supply risks, higher prices

Norsk Hydro ASA

20/03/2026 07:31

** RBC upgrades Norwegian aluminium producer Norsk Hydro NHY.OL to "outperform" from "sector perform", citing rising supply risks in aluminium market linked to the Mideast conflict

** The broker raises its price target to NOK 95 from NOK 85, seeing Hydro as well positioned to benefit from higher aluminium prices and European premiums due to its low-cost hydropower base

** Disruptions in the Gulf, which accounts for about 9% of global output, have already removed around 1 million tonnes of annual capacity, with further losses possible if shipping constraints persist, says RBC

** While Hydro faces headwinds from disruptions at its Qatalum JV and a weaker outlook for its extrusions business, RBC sees the group as offering relatively defensive exposure in the European mining space

** "Hydro stands out to benefit from higher aluminium prices and European premiums while its energy division could see windfall prices if area differences expand," the broker adds

** Out of 21 analysts that cover Norsk Hydro, eight rate the stock "strong buy" or "buy,"​ six rate "hold" and seven​ rate the stock "strong sell" or "sell"

 (Reporting by Jesus Calero)

 ((jesus.calero@thomsonreuters.com))