December 4, 2022

Morgan Stanley’s Adam Jonas says Freyer could be a serious battery player in the years to come.

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in stock Norwegian Battery start-up Freire Battery is getting a boost from a new bullish call from a Wall Street automotive analyst.

On Wednesday, Morgan Stanley analyst Adam Jonas raised his stock-price target for Freire (ticker: Free) from $18 per share to $26, and named the company his top pick. He had already undervalued the stock on Buy before his latest call.

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That $26 figure is his base price. Jonas also includes landscapes of bulls and bears. His bullish forecast is $60 per share. In Wall Street parlance, that’s more than 300% from recent levels—a four-bagger. His bear case is $4 per share.

Fryer’s stock was up 15% at $15.10 in recent trading. The S&P 500 and Dow Jones Industrial Average were up 0.7% and 0.6%, respectively.

Freire is focusing on manufacturing rechargeable lithium-ion batteries for the electric-vehicle and energy-storage markets. Its technology uses less material and time, thereby saving costs. it’s just one The things that Jonas likes about the company.

The company is also opening a new battery plant in Norway, called Giga Arctic, which will have the capacity to manufacture approximately 29 gigawatt-hours of battery capacity annually. This is enough to power about half a million EVs annually.

Jonas’s Bull Case’s capacity appears to increase to 300 gigawatt hours by 2035. In the case of their Bear it is believed that the Freyer only unlocks 80 gigawatt-hours of capacity by then.

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The company has also entered into a Partnerships with HANA technology,
Which manufactures equipment used in battery production. And it has tied up with electric motor maker Nidec (6594.Japan) to buy Freyr battery cells.

Jonas wrote in a research report that Fryer could move from “a small Norwegian battery start-up” to a serious battery player.

Freire replaced Ferrari (Race) as Jonas’ top pick. He still rates the latter shares at Buy and has a $300 price target for that stock. Jonas rated Tesla (TSLA) shares at Buy, with a price target of $383.

Seven out of eight, or 88%, analysts covering Fryer stock rate the shares at buy. The average buy-rating ratio for stocks in the S&P 500 is approximately 58%.

Freire, of course, isn’t in the S&P 500 because it’s so small. The company isn’t expected to generate significant sales for years.

At Jonas’ target price of $26, Freire would have a market capitalization of approximately $3 billion. The average analyst price target is just under $21 per share, but it’s still up about 59% from recent levels.

Coming into Wednesday’s trading, Freire stock is up about 18% so far this year, boosted by the passage of the Inflation Reduction Act, which has helped a lot of renewable and energy-storage stocks. In July Sens. Shares have risen more than 50% since the announcement of a surprise agreement between Chuck Schumer (D., NY) and Joe Manchin (D., W.Va.) that allowed legislation to pass the Senate .

Write to Al Root at [email protected]