The PointsBet Holdings Ltd (ASX: PBH) share price is back on form and pushing higher on Thursday.
At the time of writing, the sports betting company's shares are up over 2% to $9.83.
Why is the PointsBet share price rising?
The catalyst for the rise in the PointsBet share price on Thursday appears to have been a bullish broker note.
According to a note out of Goldman Sachs, its analysts have reiterated their buy rating but trimmed their price target on the company's shares to $14.90.
Based on the current PointsBet share price, this revised price target still implies potential upside of 51% over the next 12 months.
What did the broker say?
Goldman has lowered its earnings forecasts slightly to reflect its $400 million capital raising (which came as a surprise to the broker) and expectations that PointsBet will spend more heavily to grow its market share in the United States.
Nevertheless, the broker remains very positive on the company's outlook and continues to forecast very strong growth over the medium term. Especially given its US$50 billion total addressable market (TAM) in the US and its strong position.
The broker explained: "Reiterate our Buy rating on PBH, with our thesis underpinned by i) PBH's leverage to the burgeoning US Sports Betting and Gaming market which we forecast to be a >US$50 bn TAM opportunity at maturity with Canadian potentially >C$3bn, ii) our view that PBH is well-placed to achieve 10% share in states it operates in, iii) upside risk to long-run sustainable margins in Aus and the US, iv) Scalability benefits ahead noting positive impacts from the NBCUniversal deal to come/iGaming launch leveling playing field vs. peers, and v) strong management team and execution track record."
The PointsBet share price has been a very strong performer over the last 12 months. During this time, the company's shares are up a massive 67%.
