JPMorgan Downgrades Norsk Hydro Amid Brazilian Gas Supply Worries
Norsk Hydro, a Norwegian aluminum and energy company, has had its stock rating downgraded by JPMorgan due to concerns over natural gas supply disruptions at one of its Brazilian refineries.
The firm reduced Norsk Hydro's stock rating from Overweight to Neutral, lowering its price target to NOK97.00 from NOK116.00.
JPMorgan cited ongoing issues with gas supply at the Alunorte alumina refinery in Brazil as the reason for the downgrade. The company had announced a temporary curtailment due to these disruptions on August 11, and has since purchased natural gas volumes at spot prices.
The firm also revised its EBITDA forecasts for Norsk Hydro's third-quarter and fourth-quarter 2026 results by 13% and 24%, respectively. These new estimates sit below Bloomberg consensus for those periods, with JPMorgan now expecting a 12% and 14% shortfall compared to expectations.