UPDATE: Goldman Sachs Initiates Coverage on DSW on Fair Valuation

In a report published Wednesday, Goldman Sachs analyst Taposh Bari initiated coverage on

with a Neutral rating and $87.00 price target. In the report, Goldman Sachs noted, “We initiate coverage of DSW at Neutral. The company's market share leadership in adult footwear – built on value, convenience, and assortment – appears likely to expand as it opens new stores and leverages systems investments. The longer-term outlook appears less certain, however, as online competitors crowd a fragmented category. We consider DSW's valuation to be fair at 21x consensus NTM P/E. For those looking for a value-priced footwear company, we recommend SHOO, a wholesale model that has compelling growth prospects, less operating risk, better returns, and more attractive valuation.” DSW closed on Tuesday at $84.94.