The PointsBet Holdings Ltd (ASX: PBH) share price was back on form again on Friday.
The sports betting company’s shares rose a sizeable 6% to end the week at $9.75.
However, despite this strong gain, PointsBet’s shares are still down a disappointing 15% year to date.
Is the PointsBet share price good value?
One leading broker that sees a lot of value in the PointsBet share price right now is Goldman Sachs.
According to a recent note, the broker has put a buy rating and $14.75 price target on the company’s shares.
Based on the current PointsBet share price, this implies potential upside of 51% over the next 12 months.
What did the broker say?
Goldman was pleased with the company’s performance in FY 2021 and remains confident on the future. Particularly given its huge opportunity in the United States market and its strong position within it following its deal with NBCUniversal.
The broker estimates the US market will be worth US$37 billion per annum by FY 2033.
Goldman explained: “We reiterate our Buy rating on PBH, with our thesis underpinned by i) PBH’s leverage to the burgeoning US Sports Betting and iGaming market, ii) our view that PBH is well-placed to achieve 10% share in states it operates in, iii) upside risk to LR sustainable margins in Aus and the US, iv) Scalability benefits ahead noting positive impacts from the NBCUniversal deal to come and iGaming synergies, and v) strong management team and execution track record. Stay Buy with our view that current share price levels do not reflect much upside from potential license wins in states such as NY.”
All in all, the broker believes this makes the PointsBet share price great value at the current level.