Norwegian battery start-up, Freyr Battery, is experiencing a surge in its stock price following a particularly optimistic projection by automotive analyst Adam Jonas from Morgan Stanley. Jonas has raised his stock-price target for Freyr to $26 per share, marking it as his top pick. Even before this recent call, he had already rated the stock as a Buy.
While $26 is Jonas's base price, he has also provided bull and bear scenarios for Freyr. In his most bullish forecast, he predicts a share price of $60, representing a staggering increase of over 300% from its current levels. Conversely, in his bear case scenario, he suggests a price of $4 per share.
As a result of Jonas's positive assessment, Freyr stock has surged by 15%, reaching $15.10 in recent trading. Meanwhile, the S&P 500 and Dow Jones Industrial Average have seen more moderate increases of 0.7% and 0.6% respectively.
Freyr Battery is primarily focused on manufacturing rechargeable lithium-ion batteries for the electric-vehicle and energy-storage markets. The company's innovative technology allows for the use of fewer materials and shorter production times, resulting in significant cost savings. These advantages are just some of the reasons why Jonas holds a favorable opinion of Freyr.
In addition to its technological prowess, Freyr is also set to open a new battery plant in Norway called Giga Arctic. This facility will have an annual battery capacity of approximately 29 gigawatt hours, which is enough to power around half a million electric vehicles each year.
Looking toward the future, Jonas envisions the company's capacity growing to an impressive 300 gigawatt hours by 2035 in his bull case scenario. However, in his bear case scenario, he predicts a more modest capacity of only 80 gigawatt hours.
Furthermore, Freyr has entered into a partnership with Hana Technology, a leading manufacturer of equipment used in battery production. Additionally, they have signed a deal with Nidec (6594.Japan), an electric motor manufacturer, to purchase Freyr battery cells.
In conclusion, Freyr Battery is experiencing significant positive momentum as a result of the bullish call from Wall Street analyst Adam Jonas. With its innovative technology, plans for expansion, and strategic partnerships, Freyr Battery is poised to make a substantial impact in the electric vehicle and energy storage markets.
Freyr: A Rising Player in the Battery Industry
In conclusion, as Freyr continues to make waves in the battery industry, all eyes are on this promising Norwegian start-up. With its impressive growth trajectory and positive market sentiment, Freyr is positioned to make a significant impact in the coming years.