Shares of FREYR Battery (FREY) surged for a second straight session after BTIG upgraded the stock to a Buy. Analyst Gregory Lewis highlighted the company’s shift into solar manufacturing with the acquisition of a U.S. solar module plant, which would be a departure from its focus on lithium-ion battery tech. Lewis noted that FREYR could further expand in the solar sector by building a solar cell plant and aim for vertical integration while taking advantage of tax credits from the Inflation Reduction Act.
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In November, FREY announced the acquisition of a 5GW solar module facility in Texas from Trina Solar. BTIG sees this as a significant pivot from FREY’s original plan to manufacture battery cells for energy storage. The firm believes the solar module business, despite its competitive and low-margin nature, offers a clearer path to generating EBITDA compared to FREY’s prior strategy, which risked depleting its $180M cash reserves within a few years.
As a result, BTIG set a $4.00 per share price target on the assumption that the Trina Solar plant acquisition closes and production scales to full capacity by late 2025. The market responded strongly, with FREY shares soaring over 17% at the time of writing on Monday.
Is Frey Stock a Buy?
Turning to Wall Street, only one other analyst covers FREY stock. TD Cowen’s Gabriel Daoud has a Hold rating on the stock with a $2 price target. However, this may change going forward since this rating was placed in August before the acquisition news.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
