Insights

Leading broker says the PointsBet (ASX:PBH) share price has 51% upside

This sports betting company’s shares could be great value…
The post Leading broker says the PointsBet (ASX:PBH) share price has 51% upside appeared first on The Motley Fool Australia. –

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.

The post Leading broker says the PointsBet (ASX:PBH) share price has 51% upside appeared first on The Motley Fool Australia.

Should you invest $1,000 in PointsBet right now?

Before you consider PointsBet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and PointsBet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Here are the top 10 ASX shares today

Which ASX shares are looking to finish the week as the top movers on the ASX 300 today?

ASX 200 (ASX:XJO) midday update: Fortescue crashes, IRESS sinks

3 exciting ASX tech shares to buy this month

ASX 200 (ASX:XJO) midday update: Telstra unveils T25 strategy, Wesfarmers’ API offer

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!