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.
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