Polypore (PPO), LG Chem May See Pressure as Reduction in Volt Production 'Inevitable' -Axiom (GM)

Citing a lack of demand, Axiom Capital analyst Gordon Johnson called production cuts for General Motors' (NYSE: GM) Chevy Volt "inevitable." Applying the assumption to something a little more up Johnson's alley (he is an alt-energy/solar analyst), Johnson pointed to a chain of supply which should be watched closely: LG Chem bases its production estimates off of demand for Chevy Volts, and Polypore (NYSE: PPO) bases its forecasts off of LG Chem estimates.

Johnson believes shares of Polypore are currently overvalued; the analyst maintains a Sell rating and $24 price target on the stock.

General Motors said earlier Thursday February sales rose 1.1 percent as small compact car sales grew 43 percent.

While Johnson did not mention the battery supplier, A123 (Nasdaq: AONE) is the current supplier for the Volt's lithium-ion battery technology.

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