KeyBanc Capital Markets upgraded Keane (KEA
) to buy from hold, citing its recently announced "One Keane" initiative.
Analyst Anurag Rana says the primary objective of this initiative is to improve Keane's top and bottom-line by replacing the branch model with a vertical focused global delivery network. Following a meeting with management, Rana believes the company is taking the right steps to change its archaic operating model and improve top-line growth. While management didn't comment about a particular time frame to achieve an offshore/onshore mix, Rana believes the process could be faster than he originally thought. The analyst set an $18 stock price target.