Analyst Upgrades

• Chesapeake (CHK) to buy from hold at Canaccord.
• Biogen (BIIB) and Regeneron (REGN) to outperform from sector perform at RBC Capital.
• Caribou Coffee (CBOU) to outperform from neutral and Encore Energy (ENP) to neutral from underperform at RW Baird.
• Fluor (FLR) to market perform from underperform at BMO Capital.
• Hornbeck Offshore (HOS) to conviction buy from neutral at Goldman.
• Saks (SKS) and Zale (ZLC) to neutral from underperform at BofA/Merrill.

Caribou Coffee (CBOU) is sometimes seen as a Starbucks (SBUX) knock-off, but this company can definitely stand on its own. The Minneapolis-based Caribou is the second-largest company-owned gourmet coffeehouse operator in the United States, based on the number of coffeehouses.

As of 2009, Caribou Coffee had 515 coffeehouses, including 101 franchised locations. The company offers high-quality gourmet coffee and espresso-based beverages, as well as specialty teas and whole bean coffee.

For millions of Americans, and indeed for millions around the globe, there's nothing like a piping hot cup of coffee to help kick-start the day. It's the beverage of choice for the hordes on Wall Street, many of whom rely on a strong cup of java to help propel them through a stressful trading day.

But Wall Street pros don't just relegate their relationship with coffee to what's inside their mugs. For many professionals, as well as for many individual investors, coffee is more about buying and selling shares of the best coffee stocks out there.

Caribou Coffee Company Inc. (NASDAQ: CBOU) is perhaps the least well known of the coffee stocks, but that shouldn't deter you from taking a sip from their cup. The Minneapolis-based company is the second largest company-owned gourmet coffeehouse operator in the United States, based on the number of coffeehouses.

At the end of Q1, Caribou Coffee had 515 coffeehouses, including 101 franchised locations. The company offers high-quality gourmet coffee and espresso-based beverages, as well as specialty teas, baked goods, whole bean coffee, branded merchandise, and related products.

For millions of Americans, and indeed for millions around the globe, there's nothing like a piping hot cup of coffee to help kick start the day. It's the beverage of choice for the hordes on Wall Street, many of whom rely on a strong cup of java to help propel them through a stressful trading day.

But Wall Street pros don't just relegate their relationship with coffee to what's inside their mugs.

Despite some crummy housing data and some less optimistic jobs data, the markets soared higher today. Even higher energy prices based on lower inventories failed to sour the mood of the bulls. A 2% correction yesterday was enough for the buying opportunity crowd. A strong 7-Year Treasury auction sealed the fate of the day after investors bought yield.

Today could have even been added window dressing as tomorrow is the month-end.

Here were the unofficial closing bell levels:

Dow 8,403.80 +103.78 (1.25%)
S&P 500 906.83 +13.77 (1.54%)
Nasdaq 1,751.79 +20.71 (1.20%)

Top Analyst Calls

Starbucks Corporation (NASDAQ:SBUX) will host its 2007 annual shareholders meeting on Wednesday, March 21, 2007 in Seattle. What normally is a quiet, simple affair, is drawing extensive coverage as both investors and analysts are looking for comfort and solid guidance. The stock has been under pressure for the last 4-6 months as investors are questioning sustainability of earnings growth.

The $23 billion market cap company is probably experiencing what is normal and expected. The growth rate for Starbucks will settle into a predictable 20-22% for the next three to four years. This is versus the 30%+ growth the company enjoyed in its early development. So what is everyone nervous about?

Starbucks is so far ahead of its nearest pure competitor. Caribou Coffee Company, Inc. (NASDAQ:CBOU), a Minneapolis, Minnesota-based competitor has about 500 stores spread out over 16 states. Caribou has yet to turn a profit and has been struggling since its early 2006 IPO. Dunkin Donuts and McDonald's Corp. (NYSE:MCD) are certainly formidable competitors, but the customer base and the destination crowd are not going to forgo Starbucks for a McDonald's coffee. McDonald's customers rarely go to McDonald's for just a cup of coffee. It's an ancillary sale, always has and always will be. Sure the coffee offerings can be improved and varied, but c'mon let's get real.