Oppenheimer analyst Andy Yeung raised his price target on Bitauto (BITA) from $15 to $20 to reflect improved sentiments from automotive advertisers:
Bitauto management was optimistic about sustaining 30%+ growth over the next couple of years, driven by solid growth in underlying auto advertising spend and the on-going shift from offline to online advertising, particularly to automotive vertical website.
Chinese automotive sales grew ~13.5% in 3Q13, a rate that management believes should support healthy growth in automotive advertising spend.
We are raising our estimates for BITA modestly (see Exhibit 2, p. 2) to reflect higher revenue assumptions, driven by the continuing rebound in China passenger car sales growth (13.5% y/y in 3Q13). We’re also raising our price target from $15 to $20 to reflect higher estimates and market multiples.
I can’t believe this is happening, there is a new research report just released on BITA that I am very anxious about. Underground Stock Alerts (google them) just released this today! This research group has a huge influence on the market, I’ve seen them move stocks 500 - 1500% in ONE DAY and also influence the market down as well. You guys get the report? Curious to hear your thoughts, not sure if I should sell or hold.