Cepton price target lowered to $10 from $18 at Northland

Northland lowered the firm’s price target on Cepton (CPTN) to $10 from $18 and keeps an Outperform rating on the shares after the company issued an 8-K after the close yesterday that indicated that partner Koito notified Cepton that an unnamed OEM, which the firm says is General Motors (GM), had re-scoped its ADAS product offerings and that all outstanding orders related to the series production award were canceled as a result. The firm believes this is a push-out of next-generation ADAS systems at GM and notes that Cepton expects to continue working with GM while also working on other series product wins at Ford (F) and a European truck manufacturer.