FREYR Battery Stock (NYSE:FREY) Soars as Its Future Looks Bright
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FREYR Battery Stock (NYSE:FREY) Soars as Its Future Looks Bright

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Despite worse-than-expected Q3 earnings results, FREYR Battery shares are trending higher on the news of a potential investment from KKR as well as the selection of a site in Georgia for its planned Giga America battery plant.

FREYR Battery (NYSE:FREY) shares are up over 11% right now on positive news regarding the company’s Giga America clean battery manufacturing project in Georgia as well as the confirmation that private-equity behemoth KKR (NYSE:KKR) is in talks to make an investment in FREYR. Investors were more encouraged by the good news and were not disappointed by the dismal Q3 earnings results.

Based in Luxembourg, FREYR Battery produces and sells clean, next-generation battery cells in Europe and internationally.

On Friday, the company disclosed that it bought a multi-phase, Giga America clean-battery manufacturing project in Georgia, U.S. The project will involve a capital investment of $1.7 billion and will be developed in multiple phases, starting with an initial battery cell production module of 34 GWh. State and local incentive packages will further aid the project in the form of a probable grant or loan to speed up the project’s development.

In yet another piece of positive news, FREYR Battery confirmed that it is in discussion with KKR to raise additional financing of around $500 million. More details could follow as soon as this week when the terms of the deal are finalized. At present, however, there is no certainty of the deal.

Meanwhile, the company reported an adjusted loss of $0.80 per share, significantly lagging analysts’ estimated loss of $0.30 per share. Further, it was much worse compared to the loss of $0.42 per share in the prior-year period.

Is FREY Stock a Buy, According to Analysts?

The Wall Street community is clearly optimistic about FREY stock. Overall, the stock commands a Strong Buy consensus rating based on four unanimous Buys. FREYR Battery’s average price target of $22.50 implies 45.26% upside potential from current levels.

Further, FREY stock boasts a 9 out of 10 Smart Score on TipRanks, indicating that the stock has strong potential to outperform market expectations.

Takeaway: FREYR Has Ample Potential

FREYR’s expansion in the U.S. with the purchase of the site in Georgia and a potential investment by KKR bodes well for the stock. This will give the company robust momentum and high growth potential in the U.S. renewable energy development space. 



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