Analyst Upgrades

• Philip Morris (PM) to conviction buy from buy at Goldman.
• Peet's Coffee (PEET) to neutral from sell at Janney Capital.
• Cephalon (CEPH) to equal weight from underweight at Morgan Stanley.
• StoneMor Partners (STON) to outperform from neutral at RW Baird.
• Tibco (TIBX) to buy from underperform at BofA/Merrill.
• Apollo Group (APOL) to outperform from market perform at BMO Capital.

Northern California-based Peet's Coffee & Tea (PEET) is a different flavor of coffee stock, really cashing in on premium herbal tea offerings and specialty foods as well as providing a great cup of java.

Jellies, jams, candies and pastries are just part of Peet's diverse product line. This has helped the company find a broader customer base, appealing to those with a sweet tooth as well as caffeine junkies and iced tea fanatics. The results are clear in Peet's bottom line.

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.

Just about a year ago, the shares of Diedrich Coffee (DDRX) were trading around 30 cents. Since then, it's been an incredible ride as the shares have reached $33.

Over the past month, Diedrich Coffee has actually been the target of a heated buyout battle from Peet's Coffee & Tea (PEET) and Green Mountain Coffee Roaster (GMCR). In fact, Monday Peet's upped its bid to $32 or $265 million. Investors think the bidding is not over, though.

On Tuesday, July 28, the Northern California-based Peet's Coffee & Tea (NASDAQ: PEET) reported a quarterly profit that beat Wall Street estimates.

The company cited a combination of tighter cost controls and higher sales at its specialty business as chief reasons for the better-than-expected results.

For the second quarter ended June 28, net income rose to $3.4 million, or 26 cents per share, from $3 million, or 21 cents per share, one year ago. Revenue rose 5% to $73.6 million.

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.