Qualcomm stock was up 5% to $86.04 in trading on the Nasdaq Stock Market on Tuesday after Morgan Stanley analyst James Faucette raised his rating on the company to overweight from equal weight, and nearly doubled his 12-month price target to $95 from $55.
In a research note to clients, Faucette pointed to last week's global legal truce with Apple, which he feels clears the company's path to more positive growth and earnings, particularly given that it is "the key enabler" of 5G.
A "range of under-appreciated options outside handsets" coupled with the ability to pursue new markets globally could pave the way to the shares reaching $120, he said.
Earlier this month, Apple and Qualcomm announced an end to their long-running dispute over royalty payments for the chipmaker's smartphone equipment - a move that spurred a near-20% rally in Qualcomm shares.
The settlement ends all litigation between the two companies and includes an unspecified payment from Apple to Qualcomm, according to a press release issued by Apple following the settlement.
Qualcomm will issue its fiscal 2019 earnings at the end of April. Analysts polled by FactSet are expecting full-year earnings per share of $4.30.