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Amazon.com sales will benefit from rising retail-store closures, according to Goldman Sachs.

Amazon stock (ticker: AMZN) has dropped nearly 11% since the e-commerce giant reported mixed financial results in July for its quarter ended in June, which included an earnings miss. The company reported adjusted second-quarter earnings per share of $5.22, below the $5.56 Wall Street consensus at the time.

Goldman Sachs analyst Heath Terry reiterated his Buy rating for Amazon stock on Tuesday. He expects that the company will report sales results above expectations for its quarter ended in September. Amazon is slated to report its third-quarter results on Oct. 24.

“We believe retail store closures will continue to aid growth, particularly in the US, for Amazon,” Terry wrote. “We expect this pace of store closures to be a tailwind for Amazon into the holiday shopping period, particularly as it expands its one-day delivery efforts.”

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Amazon shares were up 1.3% to $1,758.89 on Tuesday, just about in line with the Nasdaq Composite, which has gained 1.2% to 8143.63. The S&P 500 has risen 1.1% to 2998.16, while the Dow Jones Industrial Average has advanced 256.40 points, or 1%, to 27,043.76.

Terry noted that more than 11,000 U.S. stores have closed this year, which is already higher than the annual total in each of the past few years. He said his firm predicts there is a $75 billion sales opportunity from the 2019 closings.

The analyst lowered his price target for Amazon shares to $2,350 from $2,400, based on his estimate revisions. He expects some pressure on the company’s profitability in the third and fourth quarters because of the increased investments in one-day delivery. As a result Terry lowered his 2019 earnings per share estimate for Amazon to $22.80 from $23.18.

Other Wall Street analysts are uniformly bullish on Amazon, with all 47 having a Buy or Overweight rating on the company, according to FactSet. The average analyst price target for Amazon is $2,285.89.

While Goldman Sachs and others may overlook lower-than-expected earnings results, investors should be wary as long-term profitability from aggressive one-day delivery investments may not pan out.

Write to Tae Kim at tae.kim@barrons.com