More trouble coming for Wynn Resorts
According to Bernstein analysts, the scandal involving Steve Wynn will create headwinds for the company in the short term.
US.- Steve Wynn has been accused of sexual misconduct, and as well as having to resign as finance chairman of the Republican National Committee, its casino business has been affected. In addition to the Massachusetts Gaming Commission announcing a review of the Wynn Boston Harbor project, Bernstein analysts have forecast headwinds for the company in the short term.
The brokerage assessed there’s “uncertainty surrounding recent allegations against the company’s Chairman and CEO and subsequent parent board investigation announcement.” This is why the company’s stock prices have dropped over 10 per cent since the scandal went public on Friday.
According to Bernstein analysts, funds will likely rotate out of Wynn Macau – which has had its view downgraded to Hold by Union Gaming – and into other competitors in the near term. However, they added that they maintain their long-term positive fundamental view on the company.
“The idea that I ever assaulted any woman is preposterous (…) We find ourselves in a world where people can make allegations, regardless of the truth, and a person is left with the choice of weathering insulting publicity or engaging in multi-year lawsuits. It is deplorable for anyone to find themselves in this situation,” Steve Wynn said regarding the allegations.
