Looks like a keeper to me. Refurbish the stock or go ahead and make a sporter out of it - your choice. Improved sights will likely tighten those groups, especially if you carefully worked up loads for it.
Whatever you choose to do about the stock, DO check the fit of the action in it. Often, accuracy improvements can be made simply by adding a shim between the recoil shoulder on the receiver (bottom) and the stock crossbolt. Many of these rifles have NO contact between the two, which is never good for accuracy....and tends to promote stock splitting (as all the recoil forces go into the tang area, in that circumstance). Glass-bedding the action (though NOT to be done if keeping the rifle all original) can make a BIG difference as well.