The PointsBet Holdings Ltd (ASX: PBH) share price has been out of form in 2021.
Since the start of the year, the sports betting company's shares have fallen 10%.
Is the weakness in the PointsBet share price a buying opportunity?
One leading broker that sees a lot of value in the PointsBet share price at the current level is Goldman Sachs.
Its analysts currently have a buy rating and $14.75 price target on the company's shares.
Based on the current PointsBet share price of $10.05, this implies potential upside of 47% for investors over the next 12 months.
Why does the broker like PointsBet?
Goldman is bullish on the PointsBet share price largely due to the company's massive opportunity in the United States market.
It previously commented: "We see PBH as well-placed to carve out a niche share of the burgeoning US sports betting market, which we forecast to reach US$39 bn at maturity, implying a robust 40% CAGR out to 2033."
In addition, it sees margin expansion opportunities and scalability benefits in the future. It also doesn't believe the current PointsBet share price reflects the upside from potential licence wins in key states.
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."
