Barclays Downgrades Aspen Aerogels Stock, Cuts Price Target to $7

Barclays downgraded Aspen Aerogels from an Overweight to an Equal Weight rating, lowering its price target from $13 to $7 due to mounting challenges in the electric vehicle (EV) market, including reduced EV tax credits and General Motors’ decision to slow domestic EV production. These factors have led Barclays to cut its 2026 EBITDA forecast for Aspen by 20%, reflecting diminished growth prospects for Aspen's Thermal Barrier segment, which provides insulation for EV batteries. Despite this, Aspen's Energy Industrial segment remains a strong contributor to its EBITDA. While Aspen's thermal barrier products face limited competition, external market conditions and regulatory changes have forced the company to pivot strategically, including cost reductions and altered manufacturing plans. The stock is currently trading around $6.42 and is viewed by some analysts as undervalued with mixed projections from other firms, some maintaining an Outperform rating and higher price targets. Aspen also contends with tariffs impacting supply chains and the withdrawal of a Department of Energy loan, contributing to a challenging operating environment.