The PointsBet Holdings Ltd (ASX: PBH) share price is climbing on Wednesday.
In morning trade, the sports betting company's shares are up 3% to $9.79.
This gain has reduced its year to date decline to 15%.
Is the PointsBet share price good value?
According to a note out of Goldman Sachs, its analysts believe the PointsBet share price is in the buy zone.
This morning the broker retained its buy rating and $14.75 price target on its shares.
Based on the latest PointsBet share price, this implies potential upside of 50% over the next 12 months.
What did the broker say?
Goldman Sachs has been looking at recent trends in the gaming sector. Following its review, the broker remains very positive on the company.
In fact, it believes the PointsBet share price doesn't fully reflect a potentially transformational 12 to 18 months ahead.
Goldman commented: "On the wagering front, domestically we highlight that PBH continued to grow significantly, and having recently moved into profitability for its Australian business, is on our estimate firmly 4th place in terms of market share across digital wagering (~4%). To this end PBH continues to target 10% share of the market by 2025."
"We continue to see it as well-placed domestically noting it saw a record monthly performance in July 2021, the spring racing carnival and AFL/NRL grand finals should drive 1Q, and recent app DL data suggesting its share domestically continues to outpace its market share. Beyond this, the US remains the key attraction in our investment case, and we are of the view that there are asymmetric risks ahead, with the current share price not fully reflecting what we expect to be a transformational 12-18months ahead for the company as they aim to triple their operational footprint by CY22," it concluded.
