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PBH

PointsBets down 4% Despite Approval In Indiana

Stuart Lucy

Stuart Lucy is an Investment Specialist at the Australian Stock Report, and has gained exposure to funds management and investment banking throughout his career. He draws on this experience to provide macroeconomic commentary and actionable investment insights to clients. Stuart is responsible for writing reports, is involved in delivering Macrovue webinars and provides general advice to our members on portfolio construction. Stuart currently holds RG146 General and Securities qualifications.

PointsBet’s (ASX: PBH) has recently been approved in the state of Indiana for sports betting. This positive development is key to their aggressive expansion into the US market with the company currently operating in Iowa and New Jersey. The company has a 6.7% market share in New Jersey which saw a large revenue boost from the latest Superbowl LIV between Kansas City Chiefs and San Francisco 49ers. The event recorded 102 million total views which were higher compared to last year's Superbowl. With the latest approval in Indiana, Pointsbet is looking to benefit from one of the largest upcoming college basketball games in the US.

 

PointsBet looking to benefit from the latest Superbowl LIV with Kansas City Chiefs Winning.

However, not all news is positive for PointsBet as the share price is currently down 6% surrounding global COVID-19 fears, despite positive news in its latest approval in Indiana. The coronavirus case continues to cause sell-off in the ASX index with each day new active cases rising. Australia has recently put a temporary ban on South Korea in hopes to slow down the active coronavirus cases.

Some analysts have suggested that the current share price of PointsBet doesn’t reflect the fundamentals of the company and the strong management team that controls the company.  The company is not focusing on profitability and is priced on low forward revenue multiples because of their low margins.


 

Disclaimer:
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).
This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.
ASR has no position in any of the stocks mentioned.

 

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