Aspen Aerogels downgraded to Underweight from Equal Weight at Barclays

Barclays downgraded Aspen Aerogels (ASPN) to Underweight from Equal Weight with a price target of $6, down from $7. With the the removal of the $7,500 electric vehicle tax credit to consumers, the firm expects General Motors (GM) to cut EV production and produce only 150,000 vehicles in 2027. It sees “inescapable macroeconomic forces” putting downward pressure on Aspen’s fastest-growing business, its Thermal Barrier segment. Barclays cites Aspen’s reliance on GM and the sensitivity of Thermal Barrier gross margins to production volumes for the downgrade.