"A data warehouse is a technology that manages vast amounts of electronic information; businesses that help other companies effectively manage and store data have become hot commodities," says Dr. Melvin Pasternak.

The editor of Double-Digit Trading explains, "One such player is Teradata (TDC), our latest recommendation.

"A bidding war recently erupted between Hewlett-Packard and Dell over data storage company 3PAR. During the bidding process, 3PAR's stock price more than tripled. Ultimately, Hewlett Packard managed to win the battle, but the data storage war itself has not been won.

Analyst Upgrades

• Deutsche Bank upgraded Smurfit-Stone (SSCC) to buy from hold after raising its estimates for containerboard names and upped its target for shares to $28 from $22. The firm also raised its price target for International Paper (IP) to $38 from $32, for Packaging Corp. (PKG) to $33 from $28, for Temple-Inland (TIN) to $31 from $28, for Greif (GEF) to $67 from $65, and for Rock-Tenn (RKT) to $70 from $65. All stocks are buy rated.
• ThinkEquity upgraded VMware (VMW) to buy from hold and has a $90 price target on the stock. The firm expects VMware to benefit from increased virtual infrastructure adoption and improving vSphere solutions.
• Needham upgraded Cavium Networks (CAVM) to strong buy from buy, citing the recent pullback in shares following Cisco's (CSCO) cautious commentary. The firm has a $37 target on the stock.
• Intercontinental Exchange (ICE) was upgraded to outperform from neutral at Credit Suisse.
• MedAssets (MDAS) was upgraded to buy from hold at Auriga.
• Brookfield Properties (BPO) was upgraded to buy from hold at Citigroup.

Teradata (NYSE: TDC - option chain) shares are rising today after the stock received positive coverage in Barron's (subscription required) over the weekend. An analyst wrote in the magazine that the stock could rise by as much as 80 percent over the next two years, helped by the company's high cash reserves, good client roster, and technical advantages. This could be a good sign for TDC. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on TDC.

TDC opened this morning at $29.58. So far today the stock has hit a low of $29.11 and a high of $29.75. As of 11:25, TDC is trading at $29.36 up $1.03 (3.6%). The chart for TDC looks neutral and S&P gives TDC a neutral 3 STARS (out of 5) hold ranking.

The market has made a nice rebound over the past few months, and one question is on every investor's lips: Can it continue?

To get an answer, it might not be a bad idea to look at what the private equity firms are planning. Remember when The Blackstone Group (NYSE: BX) decided to cash out with an IPO and it marked the exact top of the private equity boom? Take a look at how that stock has performed since then.

Well, now The Financial Times reports that "Kohlberg Kravis Roberts, the world's biggest buy-out group, is preparing up to six companies for initial public offerings worth billions of dollars, including Toys 'R Us, as it sells some of its most valuable groups back to the stock market."

Analyst upgrades:

• Jefferies upgraded Aruba Networks (NASDAQ: ARUN) to Buy from Hold following the company's Q3 results to reflect improved visibility. The firm raised its target price to $6.50 from $3.
• Citigroup upgraded Mosaic (NYSE: MOS) and Potash (NYSE: POT) to Buy from Hold and Agrium (NYSE: AGU) to Hold from Sell as it believes stronger grain fundamentals more than offset China contract risk. The firm raised its target on Mosaic to $72 from $48, on Potash to $145 from $83 and on Agrium to $55 from $36.
• Fulton Financial (NASDAQ: FULT) Was upgraded to Market Perform from Underperform at Keefe Bruyette.
• Rio Tinto (NYSE: RTP) was raised to Neutral from Sell at Goldman.
• Noble Corp. (NYSE: NE) was upgraded at Deutsche Bank to Buy from Hold.

Analyst upgrades:

• Citigroup upgraded Cooper Industries (NYSE: CBE) to Hold from Sell to reflect improving macro indicators and a belief negative earnings revisions are unlikely going forward. The firm raised its target price to $37 from $28.
  
• Royal Bank of Scotland upgraded Siemens (NYSE: SI) to Buy from Hold on expectations the company will benefit from an economic recovery.
  
• Banc of America/Merril upgraded State Street (NYSE: STT) to Buy from Neutral and raised their price target to $50 from $40 following stress test results that show the company does not need additional capital. The analyst said the news "clears one of the bars on capital concerns."
  
• Teradata (NYSE: TDC) was raised to Market Weight from Underweight at Thomas Weisel.
  
• Target (NYSE: TGT) was lifted to Overweight from Neutral at JP Morgan.
  
• Diageo (NYSE: DEO) was upgraded at UBS to Neutral from Sell.

MOST NOTEWORTHY: Capstone Turbine, Insulet and Teradata were today's noteworthy initiations:

• Merriman believes Capstone Turbine (NASDAQ: CPST) is well-positioned for rapid growth as capacity constraints and dependence on subsidies drive the adoption of clean, dependable hydrocarbon-based technologies. Shares were assumed with a Buy rating.
  
• JMP Securities initiated Insulet (NASDAQ: PODD) with an Outperform rating and $29 target and expects increased adoption of the company's OmniPod disposable, tubeless insulin pump.
  
• Pacific Crest initiated Teradata (NYSE: TDC) with an Underperform rating. The firm is a seller of shares given the slowing economy and the company's exposure to larger IT deals.

OTHER INITIATIONS:

• Commercial Metals (NYSE: CMC) was initiated at UBS with an Outperform rating and $37 target.

I've recently taken a quick look at Teradata Corp. (NYSE: TDC). Teradata was a well-received spin-off of NCR Corp. (NYSE: NCR). Teradata is a commercial data warehousing, processing, and analyzing specialist for major business enterprises. The company focuses on the development of retail market intelligence based on consumer habits and trending, among other analytical data specialties.

It was recently announced by Teradata that a 550 store, an Italian supermarket chain, is expanding its Teradata system. Streetinvesting.com reported that the Italian firm wishes to more fully utilize its Teradata based information management systems across a broader range of its operations. Streetinvesting.com stated, "Teradata CRM provides a detailed understanding of customer purchase behaviors and preferences, and enables personalized offers to customers. Teradata's scalability supports growing businesses with increasingly complex business demands driven by robust growth requirements and the need for pervasive business intelligence."

In my opinion, Teradata has been performing adequately as a company, reporting $200 million net income for 2007 on sales of $1.7 billion. Currently, the company's share performance is lagging noticeably within its peer group, even though its income statement is showing four consecutive years of gross income increases. Operating expenses do appear to be weighing heavily on the company's performance, and taxes are certainly an issue.

At the time of this research, Teradata's shares are trading very near their 52-week low, prepared to open Monday at $21.77 against a 52-week high of $30.08. Analyst sentiment appears to be confident but reserved in regard to this stock. The consensus is calling it a buy.

Gary Sattler is a freelance blogger with no stock picking credentials. He does not knowingly hold interest in the companies mentioned in this post.