For Apple, the deal gives it a path to deliver a 5G iPhone in 2020 using Qualcomm's chips. There was increasing uncertainty about whether Intel, which is currently supplying cellular modems to 4G iPhones, would have a 5G chip ready in time for a 2020 release.
In the week since the Apple settlement, Qualcomm's shares have posted a 51 percent price increase.
"With the Apple settlement not only increasing earnings substantially, but also expanding the freedom with which Qualcomm can pursue new opportunities, we expect that the stock will ultimately trade at least in-line with its semiconductor peers and our $95 price target," said Faucette in a note to clients.
"Adding meaningful growth in other markets, like auto, can accelerate earnings per share growth and provide additional tailwind for further multiple expansion, which would make landing at our $120 bull case value a reality."
Apple's shares also have gained since the settlement, rising 4 percent for the week to close Tuesday at $207.48 on the Nasdaq.
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