Norsk Hydro Faces Supply Risks Amid Gas Disruptions

Norsk Hydro (OB:NHY) faces potential supply risks and cost implications after Alunorte, its alumina production facility, reduced output to 50% due to gas disruptions caused by CELBA, its natural gas supplier.

The share price of Norsk Hydro has seen a 1 month return of 8.65% and a 1 year total shareholder return of 46.44%, but recent momentum has cooled with a 3 month return down 13.46%

Analysts point to the company's recent 1 year strength and earnings growth, while bears focus on Alunorte's gas shock and aluminium supply risks

The valuation numbers suggest that Norsk Hydro may be undervalued, with a fair value estimate of NOK108.29, which is 14.7% above the current share price of NOK92.42.