Freyr Battery downgraded to Underperform from Buy at BofA

BofA downgraded Freyr Battery to Underperform from Buy with a price target of $1.90, down from $13. Freyr is pre-revenue and its outlook relies principally on capital-raising activity to drive gigafactory startup in the mid-decade time frame, notes the analyst, who sees the ability of the company to execute on its battery gigafactory manufacturing plans being impeded by tight capital markets. Given its pre-revenue status and innate capital market needs, Freyr is “naturally one of the most rates-sensitive stocks in our coverage” and as of today the company is cold stacking its capital plans at Giga Arctic and “once again” reevaluating a new strategy on Giga America, marking “the third such reevaluation in a year.”