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.)

More from Stocks

12 Stocks That Make Up the GLUM Index

12 Stocks That Make Up the GLUM Index

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

Worth a Stunning $6.6 Trillion, Tech Stocks Have Taken Over the Market

Worth a Stunning $6.6 Trillion, Tech Stocks Have Taken Over the Market

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Here's Why Snap Shares Climbed Monday

Here's Why Snap Shares Climbed Monday