Star Entertainment Group (ASX:SGR) could be the Ultimate Value Play for 2026

• Star Entertainment (ASX:SGR) trading at historic sentiment lows

• Matheson family and Bally join as shareholders, signalling confidence

• Regulatory and refinancing challenges persist

• Star’s large employment base and property assets seen as reasons for resilience

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Star Entertainment Group (ASX:SGR) has reached a turning point with the Matheson family and Bally stepping in as shareholders, according to Stuart Roberts from Stocks Down Under. Stuart states that he has not witnessed sentiment around a major stock this bad since News Corp in 1991. He points to the recent investment by new shareholders as a signal that they see opportunity at a bargain price, likening the outlook to a classic contrarian play.

Too big to fail

Roberts suggests that while regulatory and refinancing risks remain, the company’s substantial employment footprint and iconic properties in Sydney, Brisbane and the Gold Coast make it “too big to fail.” He draws parallels to the News Corp challenges of the early ‘90s, observing that deep value assets and determined stakeholders can stage a turnaround even in the face of adversity. The belief is that Star Entertainment can reposition itself successfully, particularly by adjusting its cost base and focusing on a broader market segment.

Substantial upside, but not for the faint of heart

For those with risk appetite, Stuart sees potential for significant upside, although he cautions that the journey is not for the faint-hearted. Bally’s turnaround expertise in the casino sector is highlighted as a reason for optimism about Star Entertainment’s future recovery.

Watch the whole interview here