Shares of Wynn Resorts have dropped 19 percent since allegations of sexual harassment against its CEO and founder Steve Wynn surfaced Friday, but how they fare in the long run depends largely on whether Wynn continues to remain at the helm, a Morgan Stanley analysis said Monday.

Wynn has described the allegations published in the Wall Street Journal “preposterous,” even as he’s quit his post as finance chairman of the Republican National Committee and as regulators in Massachusetts and the company’s board of directors have launched investigations. A 12 percent owner of the company, he has lost $463 million on paper since the story came out.

Analysts note that Wynn has a reputation as a creative visionary and some investors believe the quality of the company would go away if he leaves. But they predicted that Wynn selling the whole company is the most likely outcome, and said it would be better if he did it sooner rather than later to preserve the value of the business and avoid the black eye of a possible license revocation.

“In our view, the longer this overhang lingers, the worse it is for the company and the stock price,” the report said.

Much of the analysts’ discussion about the stock’s outlook centered around whether the Nevada Gaming Control Board decides to take punitive action individually against Wynn as a licensee. The board, one of two entities responsible for overseeing gaming regulation in the state, could potentially revoke Wynn’s individual license without hurting the corporation’s license.

Gaming regulations require that the Nevada Gaming Commission, the other regulatory body, establish that all gaming license applicants are “a person of good character, honesty and integrity” and “a person whose background, reputation and associations will not result in adverse publicity for the state of Nevada and its gaming industry.”

The board has not yet announced whether it will open an investigation into the allegations, though its new chairwoman, Becky Harris, said on Friday that the board was aware of the allegations and was reviewing the available information. She confirmed on Monday that the review is ongoing.

Revoking Wynn’s individual license would likely trigger a share sale, according to the analysts’ interpretation of Wynn Resorts’ Articles of Incorporation, which state that the company has the right to redeem shares of any “unsuitable” person by an action of the board of directors or to the extent required by the gaming authority.

Analysts concluded that the allegations likely will have some effect on the company’s medium-term earnings, especially in Las Vegas. They estimated 5 percent to 7 percent revenue declines this year.

The report describes Wynn Resorts as of “unprecedented” quality and said they would be a hot commodity among public companies or private equity firms if it goes on sale.

But it notes near-term consequences, such as groups and leisure customers cancelling their reservations to disassociate from Wynn and his alleged conduct.

Analysts also said sexual misconduct accusations “carry a lot more weight today than they ever have,” and won’t be brushed aside as they have in the past for powerful people who have political influence and plans for major investment.

“The severity of the accusations in light of the current sensitivity and awareness towards these issues puts more pressure on the regulators and the board to limit any bias they might have,” they wrote.

Jackie Valley contributed to this report.

Disclosure: The Nevada Independent has taken a 2017 donation from Wynn Resorts. See our full list of donors here. The board of The Nevada Independent had a meeting on 1/29/18 to discuss whether to return the $75,000 2017 donation from Wynn Resorts. The vote was unanimous in favor of keeping the contribution. Editor Jon Ralston explained the decision here.