The PointsBet Holdings Ltd (ASX: PBH) share price is under pressure on Monday.
At the time of writing, the sports betting company's shares are down over 1% to $9.75.
This means the PointsBet share price is now down 14% in the space of a month.
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Is the weakness in the PointsBet share price a buying opportunity?
While the pullback in the PointsBet share price over the last few weeks is disappointing for shareholders, it could be a buying opportunity for non-shareholders.
That's the view of the team at Bell Potter, who earlier this month put a buy rating and $13.75 price target on the company's shares.
Based on the current PointsBet share price, this implies potential upside of 41% over the next 12 months.
What did the broker say?
According to the note, the broker has changed the analyst covering the company. While this has led to a change in its investment thesis, forecasts, and valuation, it remains very positive.
It commented: "We have transferred analyst coverage of PointsBet Holdings so there is a change in our investment thesis, forecasts and valuation of the company. Overall, however, we remain positive on the company and its outlook. In particular we are attracted by the large opportunity in the sports wagering market in both the US and Canada which combined is estimated to equate to a total addressable market (TAM) of around US$10bn in 2025."
"We also believe PointsBet has a key point of differentiation in owning its own IT platform which gives it control over its product roadmap and also allows the company to scale quickly. We also see numerous potential catalysts for the share price including securing entry into further states and provinces (e.g. New York) as well as continued M&A activity in the sector," it added.
Overall, in light of the above, Bell Potter sees a lot of value in the PointsBet share price at the current level.
