Rob Black's Retail Stock Report

Starbucks (SBUX) is planning to challenge Apple's (AAPL) dominance in the rapidly growing digital download service. Starbucks is "vetting" a music download service that would rival Apple's iTunes, which has about 68% of the internet music download service.

UBS upgraded Starbucks to Buy and raised their target to $44. The firm is saying their view for re-accelerating same-store sales momentum in the near term and better than expected cost control suggests that SBUX will have the top and bottom line catalysts to beat the street for the rest of 2006.

RBC upgraded Amazon (AMZN) to Sector Perform. Price target is $32.

Goldman Sachs initiates Pier-1 Imports (PIR) with an In-Line rating.

CIBC raised their target on Coldwater Creek (CWTR) to $34. The firm is saying they feel confident CWTR's 1st quarter was solid, driven by an appealing merch mix and national magazine ads (expanded versus 1st quarter last year), which led to strong store traffic. The firm says Chico's (CHS) deficit of color in 1st quarter may have provided a boost to CWTR as well.

iRobot Corporation (IRBT) has sold more than 2 million iRobot Roomba Vacuuming Robots.

FTN Midwest is taking a more cautious near-term approach to Best Buy (BBY). Their research indicates that comparable sales trends moderated sharply throughout the quarter following a strong March. They believe comparable sales trends slowed from the high single-digit range in March to the low single-digit range in April/May.