FREYR Battery (FREY – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst Gabriel Daoud from TD Cowen downgraded the rating on the stock to a Hold and gave it a $7.00 price target.
Gabriel Daoud’s decision to rate FREYR Battery’s stock (FREY) as a hold is influenced by a mix of factors. Despite the long-term prospects of FREYR as a technology-agnostic platform with manufacturing proficiency in delivering lithium-ion batteries (LiBs) to energy storage system (ESS) markets, the short-term outlook is less certain. This is due to unresolved project financing for FREYR’s Artic & America projects and potential setbacks in automated production. The current challenging macroeconomic environment further justifies Daoud’s decision to adopt a wait-and-see approach.
Additionally, Daoud highlighted potential delays in the full automation of FREYR’s battery production, which may push back the financing of the Giga America project, leading to a later start of production. The lack of clarity regarding financial support from Norway, paired with a weaker-than-expected battery demand due to macro headwinds, also raises concerns. However, Daoud also pointed out that FREYR appears to have enough capital to sustain until 2024 and its long-term story is promising, but at this stage, it seems prudent to remain on the sidelines.
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FREYR Battery (FREY) Company Description:
Alussa Energy Acquisition Corp is a blank check company.
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