Norsk Hydro: UBS cuts target price
(CercleFinance.com) - The analyst confirms a buy rating on the share, although has reduced its target price to 77 NOK (from 80 NOK).
The total impact of the changes to the CO2 compensation system for Norsk Hydro in 2023 is estimated at around 1bn NOK, i.e. around E86.5 million.
"The proposed national Norwegian budget unexpectedly reduced CO2 compensation for 2023 by NOK1bn. We refresh our 3Q23 preview to reflect these changes," UBS says.
Analysts main concern lies in the escalating cash leakage on renewable energy projects impacting cash returns, they warn in the summary.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The total impact of the changes to the CO2 compensation system for Norsk Hydro in 2023 is estimated at around 1bn NOK, i.e. around E86.5 million.
"The proposed national Norwegian budget unexpectedly reduced CO2 compensation for 2023 by NOK1bn. We refresh our 3Q23 preview to reflect these changes," UBS says.
Analysts main concern lies in the escalating cash leakage on renewable energy projects impacting cash returns, they warn in the summary.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.