Norsk Hydro: Holding Onto And Adding More To This Winner
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Wolf ReportInvesting Group LeaderFollow5ShareSavePlay(13min)CommentsSummaryNorsk Hydro remains a top pick in metals, with an upgraded price target and fair value target.Q3 results showed strong FCF (2.2B NOK) and 6B NOK adjusted EBITDA, outperforming despite volatile aluminum extrusion markets.Strategic exit from lithium battery ventures resulted in losses, but core EU-centric aluminum operations and the CIRCAL program drive future-proof growth.Attractive upside over 15% remains, supported by high demand for low-carbon aluminum, strong balance sheet, and well-covered 3% yield. Photofex-AT/iStock Editorial via Getty Images Norsk Hydro ASA ADR (NHYDY) has been an interesting, if volatile, investment. It's hard to believe that many years ago, pre-COVID-19, when I first started writing for Seeking Alpha, I was able to buy shares at under 25 NOK per share. Today the company trades 3xThis article was written byWolf Report34.51K FollowersFollowWolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets.He covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NHYDY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a US-based CFA engaged by the reader. It may be structured as such, but it is not financial advice. Investors/readers are required and expected to do their own due diligence and research prior to any investment. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.