Barclays Downgrades Aspen Aerogels to Equal Weight, Cuts Price Target to $7

On May 29, 2025, Barclays downgraded Aspen Aerogels, Inc. (NYSE:ASPN) from Overweight to Equal Weight. The lead analyst, David Anderson, also stated that the new price target has been revised downwards to $7.00 from $13.00.

Barclays Downgrades Aspen Aerogels to Equal Weight, Cuts Price Target to $7

A row of electric vehicles all powered by the company’s advanced battery systems.

Anderson specified in his report that the rating downgrade and price target cut are informed “mounting challenges in the electric vehicle (EV) market that directly impact Aspen’s core thermal barrier business.” The decision primarily stems from diminishing EV tax credits and General Motors’ (NYSE:GM) decision to slow its domestic EV production. These factors are why Barclays also cut its 2026 EBITDA forecast for Aspen by 20%.

According to Anderson, Aspen’s thermal barrier products for EV batteries remain unique, and the company faces limited competition. However, external market conditions have forced the company to pivot strategically. On the other hand, Barclays’ Auto analyst Dan Levy projects that General Motors will produce approximately 160,000 vehicles in 2025, down from the initial expectation of 235,000 units. The production is projected to further decrease to less than 120,000 in 2026.

The updated forecasts and downgrade signal the financial challenges Aspen Aerogels is expected to face ahead. Barclays’ stock price target and rating adjustment underscore the influence of market shifts and regulatory changes on companies closely tied to the evolving EV industry.

Aspen Aerogels, Inc. (NYSE:ASPN) is a technology company specializing in high-performance aerogel insulation for energy, industrial, and EV applications. It operates in two main segments: Thermal Barrier (provides insulation for EV batteries) and Energy Industrial (supplies insulation solutions for industries like oil, gas, and chemicals). The company’s key product lines include PyroThin thermal barriers for EVs and Cryogel, Spaceloft, and Pyrogel for industrial insulation

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