Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Barclays (LON:BARC) downgraded Aspen Aerogels (NYSE:ASPN) from Equalweight to Underweight on Monday, while lowering its price target to $6.00 from $7.00, citing concerns over reduced electric vehicle production at General Motors (NYSE:GM). The stock, currently trading at $7.55, has shown significant volatility with a 52-week range of $4.16 to $33.15. According to InvestingPro data, analysts maintain a generally positive outlook with a consensus recommendation of 1.75 (Strong Buy), suggesting diverse views on the company’s prospects.
The downgrade comes as Barclays reassesses Aspen’s growth trajectory amid what it describes as "a dramatically altered macro landscape" for the thermal insulation company. The firm specifically pointed to the removal of the $7,500 consumer EV tax credit as a key factor hampering growth prospects. InvestingPro analysis indicates the company maintains a "GOOD" overall financial health score, though operating with moderate debt levels and facing profitability challenges.
Barclays now expects GM to produce only 150,000 electric vehicles in 2027, down significantly from previous projections of nearly 300,000 vehicles. This reduction directly impacts Aspen Aerogels, whose manufacturing plans had become closely aligned with GM’s EV production pace.
Aspen’s Thermal Barrier segment has grown substantially in recent years, with revenue increasing from $55 million in 2022 to $110 million in 2023 and $307 million in 2024. The segment now represents 68% of Aspen’s total revenue, up from 31% in 2022.
Despite acknowledging management’s "exceptional skill in scaling manufacturing capacity, maintaining a strong balance sheet, and reducing costs," Barclays concluded that "inescapable macroeconomic forces are exerting downward pressure" on Aspen’s fastest-growing business segment.
In other recent news, Aspen Aerogels reported its Q2 2025 earnings, delivering a strong performance that exceeded expectations. The company achieved earnings per share of $0.04, significantly surpassing the anticipated -$0.09, which represented a remarkable positive surprise of 144.44%. Revenue for the quarter reached $78 million, outpacing the forecasted $72.53 million. This revenue beat highlights the company’s ability to perform above analysts’ projections. In a separate development, Canaccord Genuity adjusted its price target for Aspen Aerogels, lowering it from $11 to $10 while maintaining a Buy rating. The firm attributed this revision to "continued uncertainty," which influenced its estimates. These recent developments provide investors with crucial insights into Aspen Aerogels’ current financial standing and analyst perspectives.
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