FREYR Battery SA (NYSE:FREY) shares continued to move higher Thursday following strong gains on Wednesday, driven by positive analyst coverage from Morgan Stanley.

What Happened: Morgan Stanley analyst Adam Jonas maintained FREYR Battery with an Overweight rating and raised the price target to $26 from $18, citing a number of catalysts.

Jonas also named FREYR Battery his top pick and put a bull case price target of $60 on the stock.

At the end of June, FREYR Battery announced it would increase the capacity of Giga Arctic in response to improving battery supply-demand dynamics, ongoing commercial success and significant progress in supply chain development, as well as project financing visibility.

"Due to aforementioned dynamics, estimated capacity has been increased 2.6x," Jonas wrote in a note to clients.

The company also announced several partnerships and supply agreements in the past few months, which Morgan Stanley expects to help increase production at Giga Arctic.

Jonas also highlighted the company as a huge beneficiary of the Inflation Reduction Act.

"We think the environment is becoming ripe for FREY to become a real player in the global battery economy later this decade," the Morgan Stanley analyst said.

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FREY Price Action: FREYR Battery made a new 52-week high on Thursday at $16.57.

At publication Thursday, the stock was up 2.01% at $15.70.

Photo: courtesy of FREYR Battery.