Citi upgrades Norsk Hydro to 'buy' on 'fair winds for the aluminium longship'

Norsk Hydro ASA

23/02/2026 11:40

** Citi upgrades Norwegian aluminium producer Norsk Hydro NHY.OL to "buy" from "neutral", citing a cheap valuation and a shift towards a deficit in the global aluminium market

** The brokerage sees "fair winds for the Aluminium Longship" as strong demand from energy transition sectors meets constrained primary supply growth from China

** The broker notes the stock is now the cheapest among global peers, a reversal from its historical premium, and appears to price in zero profit from key segments

** Reflecting this, Citi raises its EBITDA forecasts by 6-9% and lifts its PT by 24% to NOK 105

** Despite potential headwinds from mid-west premiums and carbon compensation, Citi believes the company is poised to benefit from favorable market dynamics

** Out of 20 analysts that cover Norsk Hydro, six rate it "strong buy" or "buy", six "hold", and eight "sell" or "strong sell", according to LSEG data

 (Reporting by Marta Frackowiak)

 ((marta.frackowiak@thomsonreuters.com))