FREY - Freyr stock sinks on GSCO rating downgrade shock

2023-07-18 14:20:44 ET

Shares of Norwegian battery start-up Freyr ( NYSE: FREY ) sank 7.3% on Tuesday after GSCO downgraded the company to Neutral from Buy, with a PT of $10.

Brokerage said it expects the EU market to experience increasing pressure from Chinese LFP oversupply, with the U.S. market being more protected. It noted that it remained bullish on end-market demand.

Freyr is set to begin operations in its Giga Arctic and Giga America factories in 2025/2026, the first years of ex-China oversupply, GSCO added.

GSCO said that while it remained confident about Freyr's ability to ramp initial production lines on time following the successful launch of 24M-platform produced cells at Freyr's qualification plant, it was concerned about the company's upcoming price negotiations with potential customers.

Brokerage's Neutral rating contrasts with SA Quant rating of Sell and average Wall Street rating of Buy.

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