TD Cowen analyst Gabriel Daoud maintained a Hold rating on FREYR Battery (FREY – Research Report) today and set a price target of $5.00.
Gabriel Daoud’s decision to assign a Hold rating to FREYR Battery’s stock stems from several key factors. One major issue is the postponement of automated production at CQP until 2024 due to the challenges associated with the 24M technology. This delay has in turn affected the financing timeline, pushing the expected start of production in America likely to the end of 2026. Gabriel believes, however, that the introduction of a new conventional technology partner could help speed up this process. The Giga Arctic project has also been put on hold as Norway has yet to respond to the IRA.
Continuing on, Daoud also highlights issues with manufacturing batteries at scale as a potential cause for further delays, which could lead to postponements in securing project-level financing for Giga America. The success of the CQP project is deemed critical for the company’s equity, as the ability to produce automated sample cells will expedite conversion and financing initiatives. He also mentions that FREYR has abandoned its two-line project plan and instead returned to the larger original project, which includes a $1.7B investment to establish 34 GWh. The Giga America project will now be developed on two parallel tracks, leveraging 24M and conventional LiB technology. However, Daoud maintains his Hold rating due to these complexities and potential delays.
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FREYR Battery (FREY) Company Description:
Alussa Energy Acquisition Corp is a blank check company.
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