It is time for investors to take another look at Starbucks after a recent slump for the stock, according to Deutsche Bank. Analyst Brian Mullan upgraded the coffee chain to buy from neutral, saying Monday in a note to clients that the stock was close to a bottom after a rough few weeks. "While there are certainly reasons to 'fret' here with SBUX, and we are worried about a couple of things ourselves, we have what we believe to be a reasonable degree of confidence that one can start to 'leg in' here and ultimately be rewarded for taking the risk," Mullan wrote. Shares of Starbucks have fallen 6.8% over the past month, making Deutsche Bank's price target of $127 per share 14% above where the stock closed Friday. While that is not the significant upside seen for some other stocks with buy ratings on Wall Street, this might be the best chance to buy Starbucks, the firm said. "At current levels, we note that SBUX is trading at sub 26x earnings on our 2023 estimates, which are only very modestly above consensus. While we are not immune from the desire to 'wait for a better entry,' and our sense is that many in the Investment community would like to see the same, we are not convinced (enough) that one is coming," the analyst said. Starbucks is set to release its fiscal fourth-quarter results Oct. 28. Deutsche Bank did downgrade its estimates for Starbucks sales in China even with the upgrade of the stock. —CNBC's Michael Bloom contributed to this report. Correction: This story has been updated to reflect shares of Starbucks have fallen 6.8% over the past month.
Starbucks coffee shop logo seen at one of their stores.
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It is time for investors to take another look at Starbucks after a recent slump for the stock, according to Deutsche Bank.