Varian Semiconductor's (NASDAQ:VSEA) Market Position Unmatched Says Needham

Varian Semiconductor (NASDAQ:VSEA) deserves a premium over its competitors because of its unmatched market position says Needham & Company.

Needham said, "We continue to like VSEA due to its unmatched market position, increased market adoption of new implant applications, and the growth potential of its emerging solar business. We believe VSEA's new solar equipment venture utilizes its existing infrastructure to target a fast growing market, translating to higher operating leverage in the model. We believe the stock warrants a premium over peers as VSEA's solar product is adopted in the market, enabling the company to outgrow the slowing semi equipment industry in C2011."

Needham & Company maintains a "Buy" rating on Varian Semiconductor, which closed Friday at $37.42, gaining $0.78, or 2.13 percent.