It has been a very disappointing year for the PointsBet Holdings Ltd (ASX: PBH) share price.
Since the start of the year, the sports betting company's shares have fallen 38% to $7.12.
Though, that is telling only half of the story. The PointsBet share price was up as much as 53% year to date in February.
This means that since peaking at a record high of $17.60 earlier this year, the company's shares have lost approximately 60% of their value.
Is the PointsBet share price in the buy zone?
Following a meeting with management, the team at Goldman Sachs remains positive on the PointsBet share price.
This morning the broker retained its buy rating and $12.79 price target on its shares. This implies potential upside of almost 80% over the next 12 months.
What did the broker say?
Goldman revealed that it viewed the meeting with management as a positive read for the entire US sports betting industry, which it notes has corrected sharply (not just the PointsBet share price) amidst ramping promotions and mounting EBITDA losses.
In light of this, the broker believes it is worth sticking with PointsBet, especially given the upside potential.
Goldman commented: "Overall we remain positive on PBH, with our thesis underpinned by i) PBH's leverage to the burgeoning US Sports Betting and iGaming market, which we forecast to be a >US$50 bn TAM opportunity at maturity, ii) our view that PBH remains well-placed to capitalise given its in-house tech stack, iii) upside risk to long-run sustainable margins in Aus and the US, and iv) scalability benefits ahead from NBCUniversal leads and broader coverage from state roll outs."
"We continue to see significant asymmetric risks ahead for PBH given the entire sector's recent sell-off, and we note the significant upside opportunity ahead in what will likely be a transformational CY22 year as it expands its North American footprint as well as ongoing M&A attractiveness to peers," it concluded.
