Shares of Portal Software (Nasdaq: PRSF), which develops customer management and billing software for providers of Internet services, rose more than five percent on Friday, climbing 4-3/4 to 98-5/8 after the stock got a buy rating from PaineWebber. Portal Software, whose clients include US West, Qwest Communications, Covad Communications and Juno Online, already has a favorable valuation of $7.8 billion. However, investors are viewing it as a fast-growing Internet infrastructure play, so it will not be surprising if the stock continues to see big gains.
Earlier this month, Merrill Lynch added Portal Software to its top 10 technology list. Portal Software joins well-known technology heavyweights like Cisco Systems, Motorola and Texas Instruments, as well as high-flying Internet companies like Internet Capital Group and Exodus Communications. Keep an eye on Portal Software this week. The company will split its stock two-for-one after the market closes on Thursday, and as we have seen, that could help the stock.