Macquarie has drastically reduced its price target on Star Entertainment, a prominent Australian company, from A$1.25 to A$0.75.

However, the firm retains its ‘outperform’ rating on the shares.

The brokerage perceives the current earnings of the beleaguered casino operator to be at its nadir, with Star Entertainment’s (ASX:SGR) stock having been on a trading halt since the beginning of the week.

In an effort to significantly revamp its capital structure, Star Entertainment (ASX:SGR) announced on Monday its goal to raise A$750 million.

Macquarie decided to downgrade its earnings outlook following a slightly milder than anticipated trading update.

The analyst firm predicts that the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) will be cut by 4%, 5%, and 2% for fiscal years 24-26, respectively.

A review of London Stock Exchange Group data revealed that out of seven analysts, six have given the stock a ‘buy’ or higher rating, and one has given it a ‘hold’.

Despite these promising ratings, the stock has experienced a 54% drop year-to-date, as of its most recent closure.

Star Entertainment (ASX:SGR) is an Australian company that specializes in running casinos.