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Investing.com - Kepler Cheuvreux downgraded Norsk Hydro SA (OTC:NHYDY) from Buy to Hold while raising its price target to NOK68.00 from NOK64.00 on Wednesday.
The research firm cited stabilizing upstream prices following a volatile first half of the year, along with signs of recovery in the company’s downstream operations.
Kepler Cheuvreux increased its price target based on higher earnings per share forecasts and expanding peer-group multiples in the aluminum sector.
Despite noting improving trends for the Norwegian aluminum and renewable energy company, the firm highlighted that market uncertainty remains elevated for Norsk Hydro.
The downgrade reflects that recent peer re-rating has largely eliminated Norsk Hydro’s previous valuation discount, bringing the company’s multiples back toward their ten-year average levels.
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