Piper Jaffray upgrades identity management company Viisage Technology (VISGE

) to outperform from market perform.

Analyst Gene Munster says while the recent announcement of the company's relationship with IBM may not meaningfully impact numbers over the next two quarters, he thinks it shows the company's acquisitions in 2004 were sound, and its product portfolio will become more attractive as we enter the next phase in the evolution of identity management.

While a delay in the company's SEC filings and investor lawsuits add risk, Munster is positive heading into 2006, and thinks investors who want to an early on unique play in next generation identity management should move into shares of Viisage.

He sees a 5-cent 2005 loss and 6 cents 2006 earnings per share. He ups his $6 target to $7.