Standard Microsystems shares fall with fiscal 1Q outlook

Standard Microsystems' shares fell $1.86, or 6.2 percent, to $28.28. Earlier, shares hit a year low of $26.50.

On the heels of reporting its fiscal fourth-quarter profit rose, the company predicted its first-quarter adjusted profit will total 35 to 40 cents per share on revenue between $90 million and $93 million.

Analysts polled by Thomson Financial expect a profit of 46 cents per share on $92.8 million in revenue. The estimates generally exclude special items.

In an investor note, Craig-Hallum Capital analyst Christian Schwab upgraded the stock to "Buy" from "Accumulate," saying a 30 percent drop in the stock price since the start of the year makes it attractively valued.

Schwab also cut his price target to $35 from $41, his fiscal 2009 adjusted earnings estimate to $2.14 from $2.38, and his revenue estimate to $400.5 million from $417.1 million.

"Looking forward, we believe our current estimates could prove to be conservative," he said.