Qualcomm's  (QCOM) profits may take a hit from a protracted legal battle with Apple  (AAPL) , according to analysts at Morgan Stanley, following the company's counter suit against Apple after they accused Qualcomm of charging exorbitant licensing fees. 

"We are surprised by the number of investors that believe the two companies are likely to reach a quick settlement," writes Morgan Stanley analyst James Faucette. "In our view, both sides are better served to pursue strategies that may take 2-3 years, or more, to play out."

Morgan Stanley has an "equal weight" rating on Qualcomm. 

(What will move markets this quarter and how should investors position themselves ahead of time? Jim Cramer sat down with four of TheStreet's top columnists recently to get their views. Click here to listen to his latest Trading Strategies roundtable with them and read their advice for stocks, bonds, forex and gold.)

If you liked this article you might like

What Will Be Broadcom's Next Move?

What Will Be Broadcom's Next Move?

Dow Drops Over 250 Points to End Six-Session Winning Streak

Dow Drops Over 250 Points to End Six-Session Winning Streak

Qualcomm Lifts Offer for NXP Semiconductors to $44 Billion

Qualcomm Lifts Offer for NXP Semiconductors to $44 Billion

These Are the Hottest Stories on Wall Street Tuesday

These Are the Hottest Stories on Wall Street Tuesday

Qualcomm's Higher NXP Bid Secures OK From Elliott Management's Paul Singer

Qualcomm's Higher NXP Bid Secures OK From Elliott Management's Paul Singer