Morgan Stanley analyst James Faucette is out with a research report on shares of QUALCOMM, Inc. (NASDAQ:QCOM) following Samsung’s recent Note 7 recall, improved iPhone 7 data points, and the anticipation for Intel share gains.

From Faucette’s perspective, both the demand data points and the recall take away “little” from his estimates, anticipating “limited EPS drag.” As such, the analyst reiterates an Overweight rating on QCOM with a $65 price target, which represents a 3% increase from where the stock is currently trading.

Though Samsung cut units from 14mm to 6mm on the heels of a total product recall, Faucette explains, “We are not anticipating that Qualcomm will be paid royalties on the recalled units, but that they would be paid for chips for both the recalled units as well as the replacements.”

“Our OW rating is predicated on the conclusion of royalty compliance issues in China, continued share gains in the handset market and chip margin improvements. Our estimated earnings power of $6.00 -$6.50 would see only limited negative impact if share loss in the iPhone 7 extends beyond the current 25% of iPhones 7’s using Intel that are currently built into our estimates, while the recent Samsung Note 7 recall is likely a limited headwind as handset OEMs capitalize on share gain opportunities,” Faucette concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst James Faucette is ranked #350 out of 4,163 analysts. Faucette has a 77% success rate and realizes 8.6% in his yearly returns. When recommending QCOM, Faucette gains 12.2% in average profits on the stock.

TipRanks analytics indicate QCOM as a Buy. Based on 18 analysts polled in the last 3 months, 9 rate a Buy on QCOM, 8 maintain a Hold, while 1 issues a Sell. The consensus price target stands at $62.54, marking a nearly 1% downside from where the shares last closed.