• Banc of America/Merrill upgraded DPL Inc (NYSE: DPL) to Neutral from Underperform following the settlement agreement with staff of the Public Utilities Commission of Ohio on Electric Security Plan.
  
• Friedman Billings upgraded SeaBright Insurance (NYSE: SBX) to Outperform from Market Perform on valuation as they believe shares are oversold at current levels. Despite upgrading, the firm lowered its target price to $14 from $16.
  
• JP Morgan upgraded AT&T (T) to Overweight from Neutral as it believes upside earnings revisions are likely in 2009 due to the company's conservative wireline margin outlook. The firm finds the stock's valuation attractive at current levels and raised their target on shares to $28 from $24.
• Chubb (NYSE: CB) was upgraded to buy from Neutral at UBS.
  
• Cascal B.V. (NYSE: HOO) was raised to Outperform from Neutral at Credit Suisse.
  
• Healthcare Realty Trust (NYSE: HR) was upgraded at Keefe Bruyette to Outperform from Market Perform.

• Citigroup upgraded shares of Consol Energy (NYSE: CNX) to Buy from Hold following the company's lowered guidance as 2009 is fully contracted with a 26% price increase. The firm raised its target to $40 from $38.
  
• Deutsche Bank upgraded AstraZeneca (NYSE: AZN) to Buy from Hold on valuation as it thinks the sell-off on the company's Q4 miss and cautious guidance is overdone.
  
• Wachovia upgraded Boston Scientific (NYSE: BSX) to Outperform from Market Perform because the firm thinks the outlook of the company's two main markets is improving. The firm believes the company's valuation is attractive. Thomas Weisel upgraded Boston Scientific to Overweight from Market Weight citing valuation and improving fundamentals.
• Goldman added MasterCard (NYSE: MA) to the Conviction Buy List.
  
• Accuray (NASDAQ: ARAY) was raised to Buy from Neutral at Piper Jaffray.
  
• KLA-Tencor (NASDAQ: KLAC) was upgraded to Buy from Neutral at Banc of America/Merrill.

Starbucks has been a Wall Street darling for years as it proves it is able to expand (not just in the coffee business, but in everything from ice cream to movie promotion), while  maintaining a remarkably strong brand. Starbucks still manages to stand for the finer things in life while it threatens to outpace McDonald's in number of storefronts.

Business-wise there's really nothing to complain about. But stock-wise, investors started to get nervous just this month. It seems things are going a little too well when it comes to the stock price.

The problem, in a word, is valuation. The stock reached $40 a share in early May. The Wall Street Journal ran a "Heard on the Street" that timed things just about right. The column said Starbucks was getting risky since it had a multiple higher than any large-cap stock of comparable size. It quoted money managers worrying that if the company so much as hiccuped executing its ambitious strategy, the stock could be hit very hard.

That's right about when the market hit a rough patch and Starbucks shares started to fall -- faster and harder than most large-cap stocks. SBUX is now at $35. It's getting cheaper, but we still show the p-e as 51, which is darn high for a company growing 20% a year. On May 22, Smith Barney started coverage with a hold rating due to valuation. The price target is $40.

Sure, Starbucks still has its fans. Jim Cramer has been bullish lately on his show "Mad Money," and UBS Securities recently upgraded the stock from neutral to buy, raising its price target from $43 to $44.

The stock may not be priced for perfection anymore. But its still close enough to keep many investors on the sidelines.