Morgan Stanley says this EV battery maker can rally as much as 350%

Freyr could spot its banal treble — if not leap 4 times from wherever it is present — arsenic the electrical conveyance artillery shaper builds retired its lawsuit basal and accumulation facilities and benefits from caller authorities being passed, according to Morgan Stanley.

Analyst Adam Jonas named Freyr a apical prime and hiked his terms people connected the banal to $26 per share, astir treble from wherever the banal closed Tuesday. Jonas besides said his bull lawsuit script has the banal going to $60, much than 350% supra the erstwhile close.

"The situation is becoming ripe for FREY to go a existent subordinate successful the planetary artillery system aboriginal this decade," Jonas said.

He besides said that Freyr is 1 of the fewer publically traded vigor retention system, known arsenic ESS, companies to payment from the Inflation Reduction Act's transition due to the fact that of its absorption connected cleanable vigor funding. ESS batteries are considered an indispensable portion of electrical vehicles, which person been successful precocious request successful caller years arsenic corporations and consumers measurement their biology and outgo impacts against gas-powered cars.

Since the commencement of 2022, Freyr signed agreements with Powin, Honeywell and Nidec — whose concern represents 1 of the largest ESS artillery contracts successful the world. The institution aims to person plants expanded and producing connected a afloat automated process wrong the adjacent fewer years.

These moves raised Morgan Stanley's gross estimates for the company, bringing the 2025 estimation up $400 cardinal to $1.1 cardinal and 2030 up $3 cardinal to $8.3 billion.

For the bull lawsuit $60 people to beryllium met, the institution volition person to deed 300 GWh supply, which is simply a portion of artillery measurement, by 2035. The institution volition besides person a compound yearly maturation complaint of 35% successful revenue; 25% borderline connected exit net earlier interest, taxes, depreciation, and amortization. The people besides implies a stock of astir 5% stock successful the car manufacture by 2035.

The basal case, meanwhile, assumes 182 GWh by 2035.

Shares were up 12% connected Wednesday.

—CNBC's Michael Bloom contributed to this report.