Varian Semiconductor (NASDAQ:VSEA) Core Business, Outlook is Strong

With two more solar engagements, it appears Varian Semiconductor (NASDAQ:VSEA) is making significant headway in the sector, growing out its core business faster than expected.

Needham says, "We came away more positive on VSEA following the company’s presentation at the Needham Growth Conference. The additional two solar engagements show VSEA is making progress in a fast growing market, and we believe several solar customers will qualify its Solion process this year. VSEA’s core business appears to be doing better than expected and new orders from several leading foundries support the company’s stronger outlook. Furthermore, VSEA should benefit from GlobalFoundries’ (N/R) and Intel’s substantial 2011 capex increases."

Needham & Company reiterates a "Buy" rating on Varian Semiconductor, which closed Friday at $43.80, gaining $2.21, or 5.31 percent. Needham raised their price target on them from $42 to $48.