"We like Bitauto for its strong online-to-offline capability in sales leads generation. We expect a performance-based solution to offer meaningful upside in its wallet share among dealers. Valuation is attractive compared to peers and we recommend investors to accumulate," said analysts Evan Zhou and Dick Wei in the report.
By midafternoon, shares had soared 13.8% to $35.03.
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Separately, TheStreet Ratings team rates BITAUTO HOLDINGS LTD -ADR as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BITAUTO HOLDINGS LTD -ADR (BITA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows: