The PointsBet Holdings Ltd (ASX: PBH) share price spiralled upwards today, prompting ASX investors to pay attention.
At the close, shares in the sports betting company finished 18.2% higher at $4.35. More than 5.3 million shares exchanged hands during the course of Thursday's session.
Oddly enough, investors are piling into the company today without any news from PointsBet. This leaves us to look back at what recent events could be impacting the PointsBet share price today.
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Broker rating that's hard to grapple with
In light of the lack of new information, investors are forced to revert back to the latest news on PointsBet for context. At this point in time, that takes us back to a broker note from Goldman Sachs, which was released yesterday.
The analysts at Goldman decided to reduce their price target on the sports betting company by 32% to $6.74. Clearly, shareholders were shaken by the revision, prompting the PointsBet share price to tumble 11.8%.
While the broker maintained its buy rating, it explained the new price target reflected a derating of peer multiples and lower earnings estimates.
Perhaps market participants have found solace in the broker's retained buy rating? Notably, Goldman mentioned that both its medium-term and long-term forecasts for PointsBet's EBITDA remained unchanged.
Last week, PointsBet posted its half-year earnings. Shareholders were tasked with deciphering whether it was a positive result overall or not.
Net revenue for the half increased by 27% year on year to $97.6 million. Meanwhile, statutory EBITDA losses deepened to $130.6 million versus the $71.3 million in the prior corresponding period.
PointsBet share price takes an 'L'
The PointsBet share price appears to be caught up in a sector-wide sell-off. Competitors abroad and locally have suffered in a similar fashion during the past year.
On the ASX, Bluebet Holdings Ltd (ASX: BBT) is another bookie struggling with a 53% share price fall. Likewise, US-listed DraftKings Inc (NASDAQ: DKNG) has plunged 65% during the 12-month timeframe.
Yet, the PointsBet share price takes the cake with a 67% landslide.
