The Star Entertainment Group Ltd

SGR: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$6.93	Wvqv	Tktw

Corporate Action: Star's Prereported Interim Result Is Overshadowed by Its Capital Raising

Angus Hewitt

Feb 23, 2023

We lower our fair value estimate for shares in no-moat Star Entertainment by 30% to AUD 1.90 following the release of interim fiscal 2023 earnings and announcement of an equity raising. We reduce our fair value estimate by 26% due to the significantly dilutive impact of the AUD 800 million equity raising alone, which will comprise a AUD 685 million 3-for-5 non-renounceable rights offer and AUD 115 million institutional placement. The additional 4% reduction to our fair value estimate is due to lower profitability forecasts for The Star Sydney.

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