MORGAN STANLEY: Bad news could be coming for these 3 stocks

Earnings season is underway, and that means that companies are letting investors get an updated peek into their books.

According to Morgan Stanley, three stocks face negative catalysts as their companies announce Q3 results.

In a note Friday, analysts at Morgan Stanley identified stocks with a high likelihood of moving dramatically on good or bad news.

"Our analysts believe that one or more imminent events will drive the share price materially over the next 15-60 days," said the note. "For each of these stocks, our analyst has high conviction in a view that diverges from the Street's, and expects a near-term event to drive the stock as the market's view moves closer to ours."

The analysts identified 9 stocks facing positive catalysts and 3 with negative ones Below we've put together the latter 3 stocks along with the analysts' best, base and worst case scenario for the stock price.