Needham initiates coverage on Aspen with ‘buy’ rating

Needham & Company, the independent asset management firm, has initiated coverage on Aspen Aerogel with a ‘buy’ rating and a target price of $9.50. Last week Aspen announced its revenues in Q2 2015 were more than $30 million, 13 per cent higher than the same period last year.

Initiating its coverage of Aspen with a ‘buy’ rating, Needham explained that there is high demand for the firm’s high-tech insulation products. It also said the firm had a scalable business model.

Sean K.F. Hannan, an analyst at Needham & Company, said: “A brief overview of Aspen’s end-user base reveals an impressive list of adopters, which generally continue to demand (and wait for) product at a higher level than Aspen has been able to produce.”

Hannan added: “With a scalable model, a new ramping production line, and a new (2nd) facility selection process underway, we expect healthy long-term revenue and EBITDA generation.”

Listed on the NYSE, shares in Aspen closed at $7.00 yesterday.

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