Freyr (NYSE:FREY) stock is soaring higher following an upgrade by acclaimed Morgan Stanley analyst Adam Jonas. The analyst increased his price target to $26 from $18 and highlighted the battery company as a top pick. Jonas’ bull case target is a sky-high $60 per share and his bear case target is $4. On TipRanks, the analyst has an average one-year return of 8.7% and is ranked at 603 out of 7,977 Wall Street analysts.
Freyr produces rechargeable lithium-ion batteries for the electric vehicle (EV) and energy storage industries. The company is also in the process of opening Giga Arctic in Norway, a new battery plant that will have an expected annual capacity of 29 gigawatt hours upon completion. In Jonas’ bull case, the analyst expects Freyr’s capacity to grow to 300 gigawatt hours by 2035. His bear case foresees capacity of just 80 gigawatt hours by 2035.
Furthermore, Jonas sees the Inflation Reduction Act as a significant benefit for FREY stock. He believes that the act will “help incentivize EV and battery production domestically.” Freyr has also recently signed exciting agreements with Hana Technology and Nidec (OTCMKTS:NJDCY).
Still, the potential success of Freyr may take some time. Jonas explains that the company could become a contender in the global battery market “later in the decade.”
With Jonas on board, let’s take a look at the top investors betting big on Freyr’s success.
5 Investors Betting Big on FREY Stock
Tracking institutional ownership is important, as these large investors provide liquidity and price support for stocks. During the second quarter, 105 funds reported owning FREY stock, an increase of eight funds from the prior quarter. Meanwhile, the institutional put/call ratio lies at a low 0.29, up from 0.28 during Q1. This means that institutions own way more call options against the company than put options.
So, who are Freyr’s top investors?
- Sylebra Capital: 12.49 million shares. Sylebra sold 295,273 shares during Q2.
- Alussa Energy Sponsor: 11.89 million shares. Alussa purchased 4.71 million shares during Q2.
- Kim LLC: 11.5 million shares. Kim purchased its entire stake during the second quarter.
- ATS: 9.22 million shares. ATS also purchased its entire stake during the second quarter.
- Teknovekst Invest: 8.39 million shares. All shares were purchased during Q2.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.