Citi cuts Norsk Hydro to 'neutral' after aluminium-driven rally

Norsk Hydro ASA

12/05/2026 15:34

** Citi cuts Norsk Hydro NHY.OL to "neutral" from "buy", saying aluminium-price gain expectations that underpinned its upgrade in February have largely played out, capping upside

** Even as Hydro is still one of the cheapest aluminium stocks globally, Citi views the risk/reward as less attractive, and sees limited scope for further re-rating of consensus EBITDA

** "Whilst we are not downplaying the structural challenges faced by the downstream businesses within NHY, a 10% change in aluminium prices could offset their entire EBITDA," it says

** The energy segment could benefit from higher energy prices, but metal moves are more significant, the broker adds

** Citi raises its price target to 110 NOK, broadly in line with the current share price. Stock up over 32% YTD

 (Reporting by Elviira Luoma)

 ((Elviira.luoma@thomsonreuters.com))