PointsBet (ASX:PBH) share price higher on bullish broker note

This sports betting company’s shares could be in the buy zone…
The post PointsBet (ASX:PBH) share price higher on bullish broker note appeared first on The Motley Fool Australia. –

The PointsBet Holdings Ltd (ASX: PBH) share price is back on form and pushing higher on Thursday.

At the time of writing, the sports betting company’s shares are up over 2% to $9.83.

Why is the PointsBet share price rising?

The catalyst for the rise in the PointsBet share price on Thursday appears to have been a bullish broker note.

According to a note out of Goldman Sachs, its analysts have reiterated their buy rating but trimmed their price target on the company’s shares to $14.90.

Based on the current PointsBet share price, this revised price target still implies potential upside of 51% over the next 12 months.

What did the broker say?

Goldman has lowered its earnings forecasts slightly to reflect its $400 million capital raising (which came as a surprise to the broker) and expectations that PointsBet will spend more heavily to grow its market share in the United States.

Nevertheless, the broker remains very positive on the company’s outlook and continues to forecast very strong growth over the medium term. Especially given its US$50 billion total addressable market (TAM) in the US and its strong position.

The broker explained: “Reiterate our Buy rating on PBH, with our thesis underpinned by i) PBH’s leverage to the burgeoning US Sports Betting and Gaming market which we forecast to be a >US$50 bn TAM opportunity at maturity with Canadian potentially >C$3bn, ii) our view that PBH is well-placed to achieve 10% share in states it operates in, iii) upside risk to long-run sustainable margins in Aus and the US, iv) Scalability benefits ahead noting positive impacts from the NBCUniversal deal to come/iGaming launch leveling playing field vs. peers, and v) strong management team and execution track record.”

The PointsBet share price has been a very strong performer over the last 12 months. During this time, the company’s shares are up a massive 67%.

The post PointsBet (ASX:PBH) share price higher on bullish broker note 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 May 24th 2021

More reading

5 things to watch on the ASX 200 on Thursday

Why Chalice Mining, GUD, Integral Diagnostics, & PointsBet are dropping

Why Bubs, Mayne Pharma, Paradigm, & PointsBet shares are tumbling lower

What’s driving the PointsBet (ASX:PBH) share price sharply lower?
ASX 200 midday update: Afterpay jumps again, Qantas stands down crew

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!