Facebook CEO Mark Zuckerberg speaks during the F8 Facebook Developers conference on May 1, 2018 in San Jose, California.

Facebook is Deutsche Bank's top pick among large internet stocks, with an "extremely attractive" valuation and a bevy of potential.

"We continue to view Facebook as the best risk/reward in large cap internet given the potential for core Facebook engagement to stabilize, for monetization in the Stories format to drive a potential re-acceleration in growth in mid-2019, for the negative news cycle to abate and given the extremely attractive current valuation," Deutsche Bank's Lloyd Walmsley said in a note to investors Monday.

Facebook shares closed Monday up 3.2 percent. The stock has fallen sharply into a bear market, slipping more than 37 percent from its recent high in July. Wall Street defines a bear market as a fall of more than 20 percent from a stock's 52-week high.

"We make no changes to estimates but reiterate our Buy rating on FB shares," Walmsley said.

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