The Accent Group Ltd (ASX: AX1) share price is rising again on Wednesday.
In afternoon trade, the footwear and athleisure retailer's shares are up 1% to $2.51.
This latest gain means the Accent share price has now doubled in value over the last six months.
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Can the Accent share price keep rising from here?
The good news for investors is that this retail share may still have plenty of room to climb from here despite its recent heroics.
That's the view of analysts at Goldman Sachs, who have just reiterated their buy rating and $3.10 price target on its shares.
Based on the current Accent share price, this suggests that its shares still have almost 24% upside left in them.
What did the broker say?
Goldman believes the market is underestimating the company's potential from new store openings and distributed brand share gains. It commented:
We are Buy rated on AX1 and believe the market is underestimating the full earnings potential of the business with upside from new stores and distributed brand share gains. Our FY24/FY25 EBIT forecast sit +10%/+12% ahead of Visible Alpha consensus.
In addition, the broker highlights that Accent has just presented at its annual Emerging Leaders Conference. Pleasingly, its analysts were happy with what management said at the event. Goldman adds:
We discussed the 3 key demographics (1) Youth footwear banners in Platypus, Subtype, and Hype continues to perform well. Management believes that younger consumers still have capacity to spend and highlighted Platypus where there is ample runway for store growth; (2) sports/school banner TAF has performed well despite strong YoY comps and there are no signs of a slowdown in this banner, which is consistent with our view around resilience in performance footwear; (3) Sketchers as a brand has held up very well despite its customer base being exposed to cyclical factors.
In saying this, performance of Sketchers has been strong globally and Australia has been no exception. We see plenty of runway for this banner, with significant long term store upside (GSe: +27 stores to FY25E).
