Australia's Tabcorp slips, Morningstar expects penalty after probe, cuts valuation

Tabcorp Holdings

11/05/2026 06:44

Updates

** Shares of Tabcorp Holdings TAH.AX fall as much as 2.7% to A$0.735, their lowest level since August 26, 2025

** Morningstar expects TAH to be fined after regulator AUSTRAC commenced an investigation into co's compliance with anti-money laundering and terrorism financing obligations

** When AUSTRAC commences a high-profile investigation, it usually results in at least an undertaking, if not a fine - Morningstar

** Investment research firm assumes an A$120 mln ($86.76 mln) base case penalty for Tabcorp

** Adds lack of detail around the investigation has spooked the market, with share price fall implying an A$500 mln fine

** Cuts fair value estimate by 4% to A$0.96, says shares now screen as "undervalued"

** Down ~24% YTD

($1 = 1.3831 Australian dollars)

 (Reporting by Anjali Singh and Nikita Maria Jino in Bengaluru; Editing by Edmund Klamann)

 ((Nikita.Jino@thomsonreuters.com;))