Jefferies expressed optimism on Star Entertainment Group’s (ASX:SGR) capital raising strategy.

The casino company’s shares are forecasted to reach a market price of A$0.68 as it taps the capital market for the second time this year.

Star Entertainment (ASX:SGR) aims to attract A$750 million as part of a key capital restructuring initiative.

The brokerage has upheld its ‘buy’ rating on the company’s stock.

The company’s earnings are projected to stabilize with a current EBITDA running rate of A$252 million.

Jefferies highlighted that this capital raising and debt refinancing push the company closer to resolving the myriad of issues that have plagued the stock for a considerable period.

A majority of analysts (6 out of 7) have given the stock a buy or higher rating, while one has suggested a hold.

Despite these forecasts, the stock has dipped 54% YTD as of the most recent closure.

Star Entertainment Group (ASX:SGR) is a casino entertainment company.