FREYR Battery (NYSE:FREY) soared in mid-day trading on Wednesday after Morgan Stanley called the electric vehicle stock its top overall sector pick.
The firm pointed to more upside for FREY on the back of key milestones such as binding offtake agreements for the Norwegian company, equipment orders, funding identification. The passage of the Inflation Reduction Act was also highlighted as a major catalyst for the EV battery stock.
Analyst Adam Jonas and team also think the on-shoring theme sparked by the Inflation Reduction Act will help incentivize EV and battery production domestically.
"Coming out of our Laguna conference, we feel reinvigorated in our view that the confluence of (a) energy transition and (b) on-shoring will drive the biggest capex cycle of the century."
Morgan Stanley updated estimates on FREY and boosted the price target to $26 from $18. The bull case price target was hiked to $60 from $34.
Shares of FREY led the EV sector at 12:40 p.m on Wednesday with a 18.55% gain to $15.46. FREY hit a new post-SPAC high of $15.58 earlier in the session.