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Oppenheimer is out on Synaptics (NASDAQ:SYNA) saying the stock has been taking a hit on concerns of market share loss at H-P (NYSE:HPQ) to a competitor, Alps. Firm's channel checks indicate that there has not been any change in the procurement patterns for touchpad modules for notebooks [NBs] at the Taiwanese ODMs who account for 90% of the NBs made for H-P.

Also, both H-P and Acer mid-quarter raised their NB orders to the ODMs, which could provide upside to SYNA's guidance. Also, handset and MP3 sales appear to be robust in 4Q. With the stock having pulled back 20% they believe it provides a good opportunity to establish positions for another run in 2008. Raising 4Q07 estimates on NB strength. Reiterating Buy and $60 PT, 40% potential upside from here.

Notablecalls: SYNA has been crushed over the past 3 days. This call will generate a meaningful bounce. Actionable call alert!!

PS: My gut is telling me SYNA will trade over $45 today and possibly toward $46.

Source: Synaptics Should Bounce on Bullish Oppenheimer Note