Keynote Systems upgraded to "buy" - update

04/27/05 - B. Riley & Co.

NEW YORK, April 27 (newratings.com) - Analyst Justin Cable of B Riley & Co upgrades Keynote Systems Inc (KEYN) to "buy." The target price is set to $13.50.

In a research note published this morning, the analyst mentions that the upgrade in rating is based on valuation. Keynote Systems reported its 2Q05 results ahead of expectations driven by 5% organic growth in the company’s core measurement and monitoring business. The analyst believes that the company could enhance its operational leverage further in the near future through internal execution and additional acquisitions.