Portal Software ( PRSF) was sharply higher Friday after a brokerage raised the stock's investment rating.

Shares in the Cupertino, Calif., billing-software maker were recently up 16 cents, or 12%, to $1.46 a share after J.P. Morgan upgraded the shares to neutral from underweight. About 2.3 million shares traded, compared with a daily average of about 550,000. The stock's 52-week high is $1.52.

In a morning research note, J.P. Morgan described the company's business as "firming" and said it was likely to turn a profit during the current fiscal year.

Analysts surveyed by First Call expect the company to lose 5 cents a share in the fiscal year.