J.P. Morgan Downgrades Norsk Hydro Due to Alunorte Gas Cost Risks
J.P. Morgan has downgraded aluminum producer Norsk Hydro (NHYDY:OTCMKTS) from Overweight to Neutral, citing risks related to rising gas costs at the company's Alunorte plant in Brazil. The firm also reduced its price target for the stock from 116 Norwegian kroner to 97 kroner. This downgrade comes amid concerns that higher energy expenses could negatively impact Norsk Hydro’s fourth-quarter EBITDA performance. The move has already affected investor sentiment, with shares of Norsk Hydro falling by 3.4% in Friday's trading session following the announcement. J.P. Morgan highlighted specific operational risks tied to gas costs at Alunorte as a key factor behind its revised outlook for the company.
Tickers: $NHYDY
Topics: aluminum industry price target adjustment stock downgrade