Apple and Qualcomm settled their legal battle. Here’s what Wall Street analysts are saying

Apple and Qualcomm settled their legal battle. Here’s what Wall Street analysts are saying

April 17, 2019 Off By readly




People crowd into the Qualcomm booth to view a series of new products during the annual Consumer Electronics Show on Jan. 4, 2017 in Las Vegas.

George Rose | Getty Images

People crowd into the Qualcomm booth to view a series of new products during the annual Consumer Electronics Show on Jan. 4, 2017 in Las Vegas.

Tech giant Apple and Qualcomm settled a legal dispute over royalties and patents on Tuesday and it has Wall Street analysts buzzing over the chipmaker’s prospects moving forward.

Analysts at Stifel, J.P. Morgan and Evercore ISI all upgraded Qualcomm on the news. Mizuho Securities, meanwhile, hiked its price target on Qualcomm to $82 per share from $62, implying a 16.3% upside from Tuesday’s close. Canaccord Genuity also raised its price target to $89 per share from $75 and reiterated its buy rating on the company.

Apple agreed to pay Qualcomm an undisclosed amount of money in the settlement and struck a chipset supply deal, which suggests the iPhone maker will buy Qualcomm chips for future smartphones. This removes a massive overhang from Qualcomm and it clears the way for both companies to focus on 5G technology. However, some analysts say Qualcomm still faces some headwinds, including a lawsuit from the Federal Trade Commission.

Qualcomm shares rose 10.5 percent in premarket trading Wednesday.

Here is what analysts are saying:

Source of this (above) article: https://www.cnbc.com/2019/04/17/apple-qualcomm-settled-their-legal-battle-heres-what-wall-street-thinks.html