Monro Inc. (NASDAQ:MNRO) share price has further upside potential due to its business growth strategies, according to Goldman Sachs.

Monro shares grew 56% in the last twelve months to a 52-week high of $67 a share at present. Market analysts, however, are seeing further upside potential in the days to come. Goldman Sachs has set their price target for Monro at $75 with a strong ‘Buy’ rating, compared to the earlier target of $49 a share.

Goldman Sachs believes the company has the potential to recapture same-store sales momentum, claiming favorable demographics and its new senior management team encourages strong unit growth potential. The firm believes Monro Inc. is facing less competition from other brands as independent competitors are facing headwinds, which is allowing the company a considerable advantage in further growth opportunities.

Monro Inc. is confident about its future fundamentals and the impact of its growth strategies on top and bottom line performance.

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“I am positive that our renewed focus on the customer and commitment to operational quality will place us well to take advantage of favorable industry trends over the next few years and drive sustainable long-term value for our shareholders,” said Brett Ponton, President and Chief Executive Officer.

Monro Inc. Acquisitions are Fueling Revenue Growth

The company had completed 29 acquisitions in the past six years, adding 386 new stores and about $520 million in annual revenue. The acquisition of four wholesale centers and 12 Tennessee-based stores are the latest on the list. The company expects its total annual sales to stand around $47 million from these two acquisition projects. The management claims Monro Inc. is also boosting its sales growth through investments in organic growth opportunities.

Monro Inc.’s net revenue in fiscal 2018 grew 10.4% to a record level of $1.128 billion compared to $1.022 billion in the past year. The sales growth in FY2018 was driven by the addition of new stores along with the recent acquisition. On the whole, the company’s expansion strategy has been successful.

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