Ottawa's Cognos Inc. continued to make solid gains on the markets Thursday in heavy trading as analysts praise the release of its latest business intelligence software.

The stock closed Thursday's session on the Toronto Stock Exchange up 3.44 per cent, or $1.51, to $46.38.

More notable than the modest gain was the trading volume – 298,261 shares, higher than its 30-day average.

The gains came after a favourable research note from U.S. Bancorp Piper Jaffray analyst Tad Piper about the release earlier this week of Cognos' ReportNet software.

"We believe there are well over 100 deals in the pipeline for the product, and that Cognos could easily reach its goal of US$10 million in ReportNet revenue in the third quarter, if not achieved this quarter," Piper wrote in a morning research note.

Piper increased his target price for Cognos shares 12.5 per cent to US$36 and maintained an "outperform" rating.

Cognos chief Ron Zambonini has threatened to host the third quarter conference call with analysts in the buff if sales do not hit that mark.

Cognos said ReportNet is the first completely Web-based BI product on the market meant to help multinational companies improve performance and increase profitability with more accurate and timely invoices, statements and other business reports.

The new product will capitalize on the partnership that Cognos struck with IBM Corp. last April.

Earlier in the week, WR Hambrecht & Co. analyst Sameer Nadkarni reiterated his "buy " rating on Cognos, with a target price of US$37 on the product release.