Energy
Thursday, August 25th, 2022 5:27 am EDT
Investors betting on stocks poised to benefit from the Inflation Reduction Act should consider putting their money in Freyr Battery , according to Goldman Sachs. Analyst Philipp Konig upgraded shares of the battery stock to a buy rating, saying in a note to clients Wednesday that expects the bill to enable the battery maker to slash capital expenditures by more than 60% for its U.S. gigafactory. “Given FREY’s initial focus on [lithium iron phosphate] batteries, we also see strong potential from the new [investment tax credit] for standalone storage,” Konig said. “Looking at the competitive landscape in the US, FREY is set to operate the largest gigafactory outside of the OEMs’ dedicated EV battery plants.” Future catalysts for the stock include location selection for its gigafactory in the U.S. and continued progress on its Giga Arctic factory — which Konig believes will be the most capital-efficient and sustainable gigafactory worldwide. “On top of capital cost competitiveness, FREY is also focused on reaching industry-leading standards with regard to energy costs and its carbon footprint,” he said. “We believe the strategic location in Norway offers access to the most cost competitive and sustainable energy sources globally.” Konig upped his price target on the stock to $19 a share, which implies that the stock could rally about 80% from Wednesday’s close. Freyr shares surged 15% in premarket trading. — CNBC’s Michael Bloom contributed reporting This post has been syndicated from a third-party source. View the original article here.
