ASPN News from Barclay Conference

[stewaj1]

Regarding ASPN, I’m including a portion of text from the transcript at Barclay’s 38th annual CEO Energy and Power Conference. It was on Sept 4th. The person speaking is their CFO, Mr. Ricardo Rodriguez. Here is the text.

“Yes. So for us, I mean, the way we look at General Motors, it took them a while to ramp up. Right now, they’re working their way up to a healthy base of about 200,000 vehicles. For our guide, we actually have them at 180,000 vehicles. The Honda Prologue is actually made by General Motors. We were really encouraged in July and throughout the 2nd part of Q2 to see the sales of that vehicle. So we actually expect about 45,000 Honda Prologue made by GM to have our product. So we think GM will probably end up at around 225,000 vehicles this year.”

So their last guide was based on an assumption that GM would produce 180K EV vehicles this year and it looks like ASPN feels that number will be about 225K which should bode well for their revenue.

In other ASPN news, Roth MKM recommends buying ASPN on the recent weakness, reiterates buy rating and $36 price target. Analyst says, “we are positive on ASPN current positioning, including a clear focus on profitable growth, as its management positions the portfolio for a strong secular opportunity.”

Canaccord, also reiterated ASPN with a buy rating with a price target of $33.

[stewaj1]

In addition, below is the text from Seaport Research following the GM Investor event yesterday:

Seaport Global Securities has maintained a Buy rating and a $38.00 price target for Aspen Aerogels (NYSE: NYSE:ASPN).

This decision comes in response to General Motors’ (NYSE:GM) recent update on its battery electric vehicle (BEV) business.

GM announced on October 8 that its projected production volume for FY24 meets the lower end of its guidance range and suggests a 2025 trajectory that could be lower than the current consensus for Aspen Aerogels.

Despite this, GM reaffirmed its dedication to BEVs, dispelling rumors of a potential pivot to plug-in electric vehicles (PHEVs).

Moreover, GM reviewed its new strategy for lithium-ion batteries (LIB), which now encompasses multiple form factors and chemistries. This strategy presents an opportunity for Aspen Aerogels to potentially secure a thermal barriers supply award for GM’s planned prismatic cell platform. This would be in addition to Aspen’s existing contract for GM’s Ultium pouch cell platform.

Seaport Global Securities believes that the latest developments from GM are overall beneficial for Aspen Aerogels’ fundamental story. The firm anticipates that the news will lead to a swift improvement in the perception of Aspen Aerogels’ stock among investors.

Aspen Aerogels is recognized for its role in providing thermal management solutions, which are critical in the performance and safety of battery electric vehicles. The company’s technology plays a key part in managing the thermal and physical challenges associated with high-performance batteries like those used in GM’s electric vehicles.

In other recent news, Aspen Aerogels secured a $125 million term loan facility and a $100 million asset-based revolving credit facility, enhancing its financial flexibility. Analyst firms Oppenheimer, TD Cowen, Roth/MKM, and B.Riley have maintained their positive ratings on Aspen Aerogels, with TD Cowen and Oppenheimer setting price targets of $41.00 and $32.00 respectively.

Aspen Aerogels has been recognized for its strategic positioning within the electric vehicle market, particularly regarding its thermal runaway solution. The company reported strong Q2 2024 performance, with a notable surge in revenue and adjusted EBITDA. Furthermore, Aspen Aerogels expects to achieve positive net income for 2024, following a revision of its full-year outlook.