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Analysts at Deutsche Bank Securities have lowered second-quarter expectations for Wynn Resorts thanks largely to poorer VIP performance in Macau, although the overall outlook remains relatively positive.

In recent months, Wynn Resorts has never been far from the headlines, and very few of them good thanks to allegations of sexual misconduct made against founder and former CEO Steve Wynn.

However, DBS lowered its forecast not as a result of those accusations but due to weakened VIP gaming performance in Macau, home to both Wynn Palace and Wynn Macau properties.

Earnings forecast for Q2 have been adjusted down four per cent, to US$17m (EBITDA).

“Relative to consensus, our second-quarter property level forecast of US$522m is approximately three per cent below Consensus Metrix consensus (US$537m) as our Macau property-level estimate is approximately four per cent below consensus,” said DBS analysts Danny Valoy and Carlo Santarelli.

However, DBS maintains its “buy” status for Wynn stock.

“Our view is predicated upon continued Macau share gains, higher end Macau market gross gaming revenue strength in both the VIP and premium mass segments, strong positioning in Las Vegas where high-end trends remain sound,” said the DBS analysts.