The PointsBet Holdings Ltd (ASX: PBH) share price has been out of form so far in 2021.
Since the start of the year, the sports betting company's shares have fallen 7.5%.
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Is the weakness in the PointsBet share price a buying opportunity for investors?
According to a note out of Goldman Sachs this week, its analysts believe the PointsBet share price is in the buy zone.
That note reveals that the broker has reiterated its buy rating but trimmed its price target slightly to $14.75.
Based on the latest PointsBet share price of $10.59, this price target implies potential upside of 39% over the next 12 months.
Why is Goldman bullish?
Goldman remains bullish on PointsBet due largely to its massive opportunity in the United States market.
It estimates that the company will have a US$37 billion total addressable market in the US by FY 2033. This represents a 37% compound annual growth rate between 2019 and 2033.
Its analysts commented: "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."
In addition, the broker believes the current PointsBet share price does not "reflect much upside from potential license wins in states such as NY."
Though, given how the company recently missed out on a licence in Arizona, along with BlueBet Holdings Ltd (ASX: BBT), it is understandable why some investors aren't getting carried away with this one.
Nevertheless, should the company be successful in gaining a New York licence, the broker appears to believe this will result in the PointsBet share price responding very positively.
