Goldman Sachs encourages investors to buy shares of potato products maker Lamb Weston , anticipating a comeback for the stock after a difficult few months. Analyst Adam Samuelson upgraded shares to buy from neutral. His price target of $127 suggests 30.6% upside from where shares closed on Friday. Shares have tumbled 15% since June 30, underperforming the S & P 500 and the Consumer Staples Select Sector SPDR Fund (XLP). Despite those losses, the stock is still up nearly 9% year to date. The recent decline has opened a buying opportunity in Lamb Weston, however, Goldman said. LW XLP mountain 2023-06-30 LW vs XLP since June 30 “We see recent underperformance providing an attractive entry point,” Samuelson wrote in a Monday note. He added that the company’s stronger-than-expected fiscal fourth-quarter and 2024 fiscal year outlook suggest “a balance of risks skewed to the upside.” “Recent investor conversations have focused on disappointing FY4Q23 organic volumes (-10% y/y) and an expectation for similar volume declines inFY1Q24E (Aug) as a new source for concern amidst broader staples volume pressure,” the analyst added, leading to the stock’s underperformance. Various factors, including destocking among quick-service restaurant customers in Asia and limited raw potato availability have contributed to the decline, said Samuelson. “Against this backdrop, we have done more detailed analysis of LW’s ongoing margin enhancement initiatives, and come away with incremental confidence that ongoing efforts to improve mix,” he said. According to the analyst, these efforts will help reduce risk of oversupply. —CNBC’s Michael Bloom contributed to this report.