Pointsbet Holdings’ FY2021 first-half result appears to have met Credit Suisse’ expectations and the broker retains its long-term optimism on the stock.
The broker expects Pointsbet will achieve long-term market share in the US and Australia of 10%.
Management says the company plans to boost marketing spend in Australia in the second half.
The broker likes Pointsbet’s competitive odds offering and believes sacrificing yield for market share will work, so long as operations are well managed.
Neutral rating and $16 target price retained.
Sector: Consumer Services.
Target price is $16.00.Current Price is $15.80. Difference: $0.20 – (brackets indicate current price is over target). If PBH meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).