The firm said it lowered its rating on the discount shoe retailer based on a valuation call.
Goldman believes the company's investment cycle will moderate a rise in earnings and create a more balanced risk/reward at its current share levels, theflyonthewall.com reports.
The firm reduced its estimates on DSW by an average of 5% and set a $37 price target on the stock, down from its previous $44 price target.
Shares of DSW are lower by 1.39% to $34.66 at the start of trading this morning.
DSW stock was rising on Wednesday after the company posted better than expected earnings results for the 2015 first quarter.
Separately, TheStreet Ratings team rates DSW INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DSW INC (DSW) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, increase in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: DSW Ratings Report