Brean Capital Monday Insights: Bitauto Hldg Ltd (ADR) (BITA), Nike Inc (NKE)

Brean Capital’s analysts weighed in today with a few insights on automotive website firm Bitauto Hldg Ltd (ADR) (NYSE:BITA) and sportswear giant Nike Inc (NYSE:NKE). While one analyst shares his expectation on Bitauto’s upcoming earnings, the other shines light on Nike’s recent launch of LunarEpic Flyknit.

Bitauto Hldg Ltd (ADR)

While Bitauto Holdings preparing to report 4Q15 earnings on Tuesday, March 8th, before the market opens, Brean Capital analyst Anne Shih reiterated a Hold rating on the stock.

Shih opined, “We believe Bitauto’s revenue growth should reflect challenges from slower underlying industry activity in 2015 which negatively impacted advertising budgets, especially by dealers, partially offset by company pullbacks in ecommerce user subsidies.”

The analyst continued, “Given our checks, expectations for slower advertising revenue growth, and the relatively cautious industry outlook (even with the sales tax cut implemented in October 2015), we are lowering our BITA revenue estimates for 4Q15, 2016 and 2017. Specifically, we are reducing our 4Q15 revenue estimate to RMB 1,210mm, up 24% YoY (versus RMB 1,221mm previously, management’s guidance of RMB 1,200mm to RMB 1,230mm, and consensus’ estimate of RMB 1,228mm) and 2016 revenue to RMB 5,087mm or +28% YoY (versus RMB 5,373mm previously and consensus’ RMB 5,183mm). Additionally, given the slower top-line growth and lower contribution from its higher margin advertising business, we expect Bitauto’s overall margin to recover more slowly than previously anticipated for 2016 and 2017.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anne Shih has a total average return of 4.5% and a 59% success rate. Shih is ranked #938 out of 3698 analysts.

Out of the 3 analysts polled by TipRanks (in the past 3 months), 1 rates Bitauto stock a Buy, while 2 rate the stock a Hold. With a downside potential of 7%, the stock’s consensus target price stands at $22.

Nike Inc

In addition, analyst Eric Tracy reiterated a Buy rating on shares of Nike, after the company unveiled its newest shoe, the LunarEpic Flyknit, a one-piece runner with a genre-busting ankle collar.

Tracy observed, “Last Thursday, NKE launched the LunarEpic Flyknit, a run easy/maximalist running shoe built on the popular Lunar platform, an evolutionary, yet differentiated new line. The signature uniqueness is the mid-height collar that seamlessly transitions from upper to midsole, and carries both functionality (facilitates “lockdown” of ankle) and disruptive aesthetic (“visible” technology historically drives consumer demand). This is key in driving not only performance athletes, but promotes cross-over appeal for everyday use (typical in the most successful NKE fw platforms).”

“Our FY16 estimates are unchanged, with our model already embedded rev and demand creation expense impact from an accelerating innovation pipeline,” the analyst added.

According to, analyst Eric Tracy has a total average return of 15% and a 65% success rate. Tracy has a 14% average return when recommending NKE, and is ranked #104 out of 3698 analysts.

Out of the 15 analysts polled by TipRanks, 13 rate Nike stock a Buy, while 2 rate the stock a Hold. With a return potential of 33%, the stock’s consensus target price stands at $79.29.

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