Investor sentiment toward aluminium has become excessively bearish even as demand remains resilient and inventories sit at historically low levels, analysts said, forecasting prices of $3,625 per tonne in 2027. Their assessment followed Norsk Hydro’s third-quarter results, which showed EBITDA, or earnings before interest, taxes, depreciation and amortization, rising 52% year on year to NOK 9.1 billion and 2% sequentially, but coming in 6% below consensus. Higher aluminium prices supported earnings, while rising costs and foreign-exchange movements reduced profitability. Bauxite and Alumina exceeded reduced expectations, and Extrusions outperformed forecasts, while Primary Metal, Markets and Energy were weaker. Analysts cut their 2026 EBITDA forecast by 4% to NOK 34.9 billion and lowered their price target for Hydro to NOK 92 from NOK 98, while retaining a Buy rating. Hydro also reduced its capital expenditure guidance to NOK 12.5 billion from NOK 13.5 billion. A temporary natural-gas interruption at the Alunorte alumina refinery caused operational disruption, but production returned to normal after alternative LNG arrangements were secured. Higher energy costs are expected to continue into the fourth quarter. Hydro has started restarting its Slovalco smelter in Slovakia, targeting annual production capacity of 75,000 tonnes by February 2027. Improving recycling margins, better cost performance and stabilizing market conditions also point to a recovery in the Extrusions business, supporting the view that pessimism toward aluminium may be overstated.