Norsk Hydro: UBS confirms buy rating after CMD

(CercleFinance.com) - UBS has confirmed its Buy rating on the Norsk Hydro stock, with an unchanged target of 77 NOK, following its CMD.


This target price gives it 20% upside potential at present.

The analyst believes that organic growth forecasts are encouraging, even though earnings forecasts are disappointing.

"In our view NHY CMD was disappointing due to lower near-term cash returns, but updated medium-term growth targets are encouraging", UBS says.

The Group plans to accelerate its growth in aluminum recycling and extrusion, with increased ambitions in renewable energies.

For 2023, Hydro expects to make investments of around 22.5bn NOK, one billion less than its previous forecast, which should then be around 15bn NOK in 2024, as in the following four years.


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