Two analysts from the street are moving the price target dials on QUALCOMM, Inc. (NASDAQ:QCOM) and eBay Inc (NASDAQ:EBAY) as earnings season wheels roll on once again. One of the top analysts from the Street is predominantly bullish on Qualcomm, but raises an eyebrow at lingering Apple licensing dispute contention. Meanwhile, another analyst is staunchly middle-of-the-road on eBay, playing it safe until eBay’s becomes a true comeback player. Let’s dive in:

Qualcomm’s Apple Shadow 

Qualcomm released its second fiscal quarter earnings for 2017 on Wednesday that showcased an earnings beat thanks to stellar QCT revenue as well as margins coupled with a reduced tax rate. Though positive that the chip giant is still the stock to bet on for the long run, and even commending near-term that the Qualcomm Technology Licensing (QTL) division is steadily capturing high-end Android market share, top analyst Michael Walkley at Canaccord underscores an overall Apple royalty dispute “overhang” in the distance.

In reaction, the analyst reiterates a Buy rating on QCOM while trimming the price target from $76 to $75, which represents a 42% increase from where the shares last closed.

For the second fiscal quarter, QCOM posted pro-forma EPS of $1.34 that solidly outclassed the analyst’s estimate calling for $1.20. In fact, results could have glimmered with even more promise were it not for Qualcomm’s legal contention with Apple over licensing royalties, which the analyst predicts will impact the stock through the close of 2017.

However, “Despite the strong results, the ongoing dispute with Apple regarding royalty payments remains the key issue impacting the share price, and we believe the Apple dispute could last well into C2018,” notes Walkley, but while maintaining conviction on the chip giant on back of a robust second fiscal quarter.

“Whether or not iPhone-related royalty revenue is recognized by Qualcomm in the near-term, we argue the share price already assumes materially lower Apple royalty payments in the future and maintain our belief Qualcomm will eventually reach an agreement with Apple. In fact, we believe Qualcomm’s counterclaim to Apple’s lawsuit provides strong arguments for Qualcomm’s long-standing licensing business model. We believe the current share price is assuming some worst case scenario outcomes […] such as the NXP acquisition does not close and Apple no longer pays royalties to Qualcomm. Therefore, we believe Qualcomm is an attractive investment opportunity for longer-term investors during this time of uncertainty,” Walkley concludes.

Michael Walkley has a very good TipRanks score with a high ranking of #23 out of 4,559 analysts. Walkley has a 66% success rate and yields 19.4% in his annual returns. However, when recommending QCOM, Walkley loses 0.4% in average profits on the stock.

TipRanks analytics show QCOM as a Buy. Out of 16 analysts polled by TipRanks in the last 3 months, 5 are bullish on Qualcomm stock, 10 remain sidelined, and 1 is bearish on the stock. With a return potential of nearly 24%, the stock’s consensus target price stands at $65.08.

eBay in Turnaround Mode

eBay shares took an almost 4% dip yesterday after releasing its first quarter print for the year that leaves Cantor analyst Naved Khan sidelined on the online auction giant’s prospects. Yet, praising signals of a comeback well in play, the analyst reiterates a Neutral rating on EBAY while upping the price target from $31 to $32, which represents a just under 2% downside from where the shares last closed.

For the first quarter of 2017, the online auction giant posted $2.22 billion in revenue, marking a 4% year-over-year rise, just topping consensus of $2.21 billion, while also reporting non-GAAP EPS of $0.49 beating consensus expectations by a cent. Top-line earnings saw a 6% year-over-year rise as well, making this a solid “progress on turnaround” for the giant.

“1Q results were broadly in line with muted Street expectations, as EBAY continued to make gradual progress on re-accelerating its top line. Although investments to improve user experience and grow brand awareness are pressuring the 2Q EPS outlook, management’s commentary indicates that the company is making progress on its structured data initiative, aimed at delivering better user experience and improving site conversions. That said, we also note that the broader environment for ecommerce remains highly competitive, with large players such as Walmart and other store-based retailers allocating significant resources to drive online sales as well. At current levels, we view EBAY as fairly valued and believe that it already reflects reasonable expectations for a pickup in growth. FCF generation and aggressive stock buybacks limit the potential downside, in our view,” Khan surmises.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Naved Khan is ranked #110 out of 4,559 analysts. Khan has an 87% success rate and gains 21.2% in his yearly returns. When recommending EBAY, Khan earns 0.0% in average profits on the stock.

TipRanks analytics demonstrate EBAY as a Buy. Based on 20 analysts polled by TipRanks in the last 3 months, 6 rate a Buy on eBay stock, 13 maintain a Hold, while 1 issues a Sell. The 12-month average price target stands at $34.72, marking a nearly 6% upside from where the stock is currently trading.