- Bitauto Holdings (NYSE:BITA) is down 7%, lower for the fourth day in a row -- this time as Oppenheimer takes a chunk out of its price target for the stock, lowering it to $62 from $95.
- Shares are trading currently at $49.75. Oppenheimer maintains an Outperform rating.
- Heavy spending on headcount, cash incentives and branding should have a 40% effect on 2015 operating margins, Oppenheimer said.
- Margin issues are haunting the shares: Q4 gross margin fell to 68.4%, down sequentially and Y/Y, and yesterday Brean downgraded on worries about "substantial margin contraction" and spending.
- This year BITA is focused on online-to-offline, mobile, and value-added services on its EP listing platform.