5 Cheap Software Stocks to Buy According to Analysts

3. Cepton, Inc. (NASDAQ:CPTN)

Number of Hedge Fund Holders: 4

Average Upside Potential Based on Analyst Ratings: 330.66%

Average Price Target: $2.35

Cepton, Inc. (NASDAQ:CPTN) provides lidar-based solutions for automotive, smart cities, smart spaces, and smart industrial applications in the United States, Japan, China, and internationally. On February 6, Cepton, Inc. (NASDAQ:CPTN) declared that it had secured a sales agreement worth millions of dollars from a major operator of highway tolling systems in the United States. According to the terms of the extensive contract, the customer will use Cepton, Inc. (NASDAQ:CPTN)’s Sora series lidar sensors on multiple significant toll roads in the Tri-State region and Northern California. 

According to Northland analyst Gus Richard, Cepton, Inc. (NASDAQ:CPTN) is a “Top Pick for 2023” due to their high-quality automotive lidar product. Richard suggested that in the automotive lidar market, four companies, including Cepton, Inc. (NASDAQ:CPTN), are mostly involved. He maintains an Outperform rating and a $4 price target on Cepton’s shares on December 22. 

According to Insider Monkey’s fourth quarter database, 4 hedge funds were bullish on Cepton, Inc. (NASDAQ:CPTN), compared to 7 funds in the prior quarter. Steve Cohen’s Point72 Asset Management is the largest stakeholder of the company, with 1.8 million shares worth $2.30 million.