Freyr could see its stock double — if not jump four times from where it is now — as the electric vehicle battery maker builds out its client base and production facilities and benefits from recent legislation being passed, according to Morgan Stanley. Analyst Adam Jonas named Freyr a top pick and hiked his price target on the stock to $26 per share, about double where the stock closed Tuesday. Jonas also said his bull case scenario has the stock going to $60, more than 350% above the previous close. "The environment is becoming ripe for FREY to become a real player in the global battery economy later this decade," Jonas said. He also said that Freyr is one of the few publicly traded energy storage system, or ESS, companies to benefit from the Inflation Reduction Act's passage, because of its focus on clean energy funding. ESS batteries are considered an essential part of electric vehicles, which have been in high demand in recent years as corporations and consumers weigh their environmental and cost impacts against gas-powered cars. Since the start of 2022, Freyr signed agreements with Powin, Honeywell and Nidec — whose partnership represents one of the largest ESS battery contracts in the world. The company aims to have plants expanded and producing on a fully automated process within the next few years. These moves raised Morgan Stanley's revenue estimates for the company, bringing the 2025 estimate up $400 million to $1.1 billion and 2030 up $3 billion to $8.3 billion. For the bull case $60 target to be met, the company will have to hit a supply of 300 GWh, a unit of battery measurement, by 2035. The company will also have a compound annual growth rate of 35% in revenue; 25% margin on exit earnings before interest, taxes, depreciation and amortization. The target also implies a share of about 5% in the auto industry by 2035. The base case, meanwhile, assumes 182 GWh by 2035. Shares were up 12% on Wednesday. — CNBC's Michael Bloom contributed to this report.