RBC cuts Norsk Hydro to 'sector perform' on soft downstream recovery

Norsk Hydro ASA

16/02/2026 11:17

** RBC downgrades Norwegian aluminium producer Norsk Hydro NHY.OL to "sector perform" from "outperform", citing a slower-than-expected recovery in its downstream business

** The broker notes that while Q4 results were solid, the extrusions division, which shapes aluminium, saw disappointing margins and a consecutive negative EBITDA quarter in Europe

** RBC lowers its PT by 2.4% to NOK 80, vs Friday's closing price of around NOK 86, having cut its adjusted extrusion EBITDA forecast by 7% for 2026-2028

** It says the stock's recent rally has priced in the company's strengths

** A potential reversal of U.S. aluminium tariffs is a key downside risk, as it could negatively impact Hydro's metal effect earnings, the broker adds

** The stock is down 3.2% at 1028 GMT

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

(Reporting by Marta Frackowiak)

((marta.frackowiak@thomsonreuters.com))