MORGAN STANLEY: Bad news is coming for these 3 stocks

It’s earnings season, which means companies are pulling back the curtain a bit to offer a look into the inner workings of business.

In anticipation of this, Morgan Stanley released a note that highlighted 12 companies whose stocks are likely to move on news.

“Our analysts believe that one or more imminent events will drive the share price materially over the next 15-60 days,” Morgan Stanley analysts said in their report. “In many cases, this potential catalyst is a [Q2] earnings release where our analyst’s forecast differs materially from the consensus.”

Their list included three stocks that they think could fall on news.

We list the three below with their stock price as of close on Friday, the bull case price scenario, the base case price scenario, and the bear case price scenario.

Las Vegas Sands

Ticker:
LVS

Primary Sector:
Discretionary/Industrials

Current Stock Price:
$US54.84

High/Base/Low Price Projection:
$US58/$US46/$US31

Morgan Stanley's take: 'While LVS continues to be the best positioned for the longer-term Macau 'China penetration' / mass market story, the company lacks the near-term catalysts of peers and is most at risk from new competition.'

Myriad Genetics

Ticker:
MYGN

Primary Sector:
Healthcare

Current Stock Price:
$US34.32

High/Base/Low Price Projection:
$US49/$US23/$US8

Morgan Stanley's take: 'Myriad is now transitioning to a more comprehensive 25 gene panel, myRisk, which tests for hereditary risk of various cancers. Discussions with insurance payors suggest myRisk is meeting resistance for coverage as payors worry about the lack of data proving clinical utility for broad genomic testing and costs.'

Parker Hannifin

Ticker:
PH

Primary Sector:
Discretionary/Industrials

Current Stock Price:
$US113.21

High/Base/Low Price Projection:
$US170/$US125/$US69

Morgan Stanley's take: 'Parker is the purest play on global IP growth to be found in the Machinery group, but uncertainty in the ROW outlook makes material acceleration less likely.'

For some more stocks you might want to avoid ...

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