RANA: Dividend And Hedging Strategy Will Support Future Share Price Upside

Narrative Update on Analyst Price Target

Analysts have trimmed their target price for Rana Gruber by NOK 10 to NOK 80 per share. This reflects slightly lower expectations for revenue growth and a modestly higher discount rate, while largely maintaining their profit margin outlook.

What's in the News

• Board approves quarterly dividend of NOK 1.60 per share, with ex date on 14 November 2025 and payment on 26 November 2025 (company board resolution)
• Rana Gruber enters into iron ore swap contracts covering a total of 585,000 metric tons across fourth quarter 2025 and first and second quarter 2026, locking in prices around USD 101 to 104 per metric ton (company client announcement)
• Third quarter 2025 concentrate production recorded at 472,000 metric tons, slightly down year on year, while ore production increased to 1,371,000 metric tons from 1,247,000 metric tons (company operating results)
• Year to date 2025, concentrate production reached 1,385,000 metric tons and ore production 4,155,000 metric tons, both modestly higher than the prior year (company operating results)

Valuation Changes

• The consensus analyst price target has fallen from NOK 90 to NOK 80 per share, representing a modest reduction in estimated fair value.
• The discount rate has risen slightly from 6.93 percent to 7.62 percent, implying a somewhat higher perceived risk or required return.
• Revenue growth has been revised down from 8.78 percent to 7.84 percent, indicating slightly more cautious expectations for top-line expansion.
• The net profit margin is essentially unchanged, nudging up from 26.06 percent to 26.06 percent, suggesting margin assumptions remain stable.
• The future P/E has edged down from 7.79x to 7.07x, pointing to a lower valuation multiple being applied to projected earnings.