Shares of Qualcomm (QCOM) - Get Report  fell Monday after the company was downgraded to equal weight from overweight by analysts at Morgan Stanley, who wrote they view the stock's valuation gap to its semiconductor peers has closed following recent gains.

Shares of San Diego-based Qualcomm were down 2.33% at $91.83 on Monday after Morgan Stanley analyst James Faucette said the stock should now "perform more in-line with peers" given its balanced risk/reward profile. He raised his price target on the stock to $90 from $89.

"Recent gains have come as investors see a high probability of a China-U.S. trade agreement" as well as optimism over 5G and additional expectations that the Federal Communications Commission case "won't materially impact the business," noted Faucette.

However, given the stock's run-up in recent months as well as ongoing uncertainty surrounding both tariffs and an antitrust lawsuit by the Federal Trade Commission currently being appealed by Qualcomm, potential tailwinds from new markets and opportunities likely will take longer to have a notable impact on results, Faucette said.

Qualcomm in August won a partial stay against the enforcement of a sweeping antitrust ruling in a lawsuit brought by the FTC that would have forced it to grant patent licenses to rival chip suppliers and end its practice of requiring its chip customers to sign a patent license before purchasing chips.

Meantime, Qualcomm last week posted fourth-quarter earnings and revenue firmly ahead of Wall Street estimates. The company posted per-share earnings of 71 cents on revenue of $4.8 billion.

It also said current quarter revenue is likely to rise to between $4.4 billion and $5.2 billion, just ahead of consensus forecasts of $4.82 billion, with adjusted per-share earnings for the quarter of between 80 cents and 90 cents a share, ahead of analysts' forecasts of 81 cents a share.

Separately, Qualcomm is expected to unveil its next flagship semiconductor at the Snapdragon Tech Summit in Hawaii next month.