Qualcomm's (QCOM) After Market Litigation Announcement Poses More Questions Than Answers - Morgan Stanley

Morgan Stanley analyst James Faucette reiterated an Equalweight rating on Qualcomm (NASDAQ: QCOM) ahead of FTC, ITC, patent infringement, contract litigation results later this year. The analyst does not see which company has the upper hand but the analyst believes those rulings will ultimately push Qualcomm and Apple (NASDAQ: AAPL) to reconciliation.

Tuesday, after the close, the ITC ruled that Apple had not infringed on Qualcomm’s patent #490. In and of itself, that would be the end of ITC Case #1, but on March 15th, a jury found Apple guilty of infringing that same patent, which seems to present an uncertain legal path forward for QUALCOMM.

The analyst stated "We do not have a strong opinion of how the case rulings will fall. Instead, our reticence to become more constructive near-term is tied to our view that unless there is strong demand for 5G phones during 2019, Apple may be willing to bide its time, leaving those that are looking for full resolution during 2019 potentially disappointed".

For an analyst ratings summary and ratings history on Qualcomm click here. For more ratings news on Qualcomm click here.

Shares of Qualcomm closed at $57.50 yesterday.

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