Sports betting is growing increasingly popular and this company looks perfectly placed to benefit…
The post Top broker tips huge gains for the PointsBet (ASX:PBH) share price appeared first on The Motley Fool Australia. –
The Pointsbet Holdings Ltd (ASX: PBH) share price has been an incredible performer over the last 12 months.
Since this time last year, the sports wagering company’s shares are up 108%.
What is PointsBet?
PointsBet is a growing sports wagering operator and iGaming provider offering innovative sports and racing betting products and services via its scalable cloud-based platform.
It currently operates in the ANZ and United States markets and is generating significant growth in both. For example, during the third quarter, the company reported a 236% increase in turnover to $905.2 million. This was driven by a 137% increase in Australian turnover to $423.2 million and a 431% increase in US turnover to $482 million.
The good news is the company is still only scratching at the surface of the latter market and looks well-placed to capture a growing slice of it.
This is thanks partly to its transformational five-year media partnership with NBC Universal. That deals sees PointsBet become the official sports betting partner of NBC Sports in the United States. Management notes that this partnership provides PointsBet with access to leading national and regional television and digital assets, with the largest sports audience of any US media company, accessing over 184 million viewers.
Can the PointsBet share price go higher?
One leading broker that believes the PointsBet share price still has a long way to run is Bell Potter.
A recent note reveals that its analysts currently have a (spec) buy rating and $20.10 price target on its shares. Based on the latest PointsBet share price of $12.50, this implies potential upside of 61% over the next 12 months.
Bell Potter is particularly positive on its opportunity in the United States.
Its analysts commented: “With partnership agreements in 14 US states, plus an online model requiring no land-based casino / racetrack partnership in Tennessee and Wyoming, PBH has set its target to increase its number of live US states from 6 to 18 plus Ontario by Dec 2022.”
“By Dec 2021, PBH sees the potential to be live in West Virginia, Tennessee, Virginia, Maryland, Arizona and Ohio, while during calendar year 2022 it is targeting a launch in Pennsylvania and Wyoming, as well as New York, Kansas, Missouri, Mississippi and Kentucky (subject to legislation). Including a launch in Ontario, could potentially see PBH operating in North American markets with a combined population of over 153m.”