Goldman Sachs Expects Strong 2Q11 for Nike (NKE)

Goldman Sachs published its research report on Nike NKE in anticipation of NKE reporting 2Q11 December 21. In a note to clients, Goldman Sachs writes, "2Q is historically a strong qtr for NKE from an EPS beat/stock reaction perspective as expectations remain in check on the heels of conservative guidance. It is notable that while NKE beat 1Q gross margin significantly, NKE only raised its implied margin guidance for 2Q-4Q slightly. Of the past ten years, NKE beat 2Q eight times by an avg of 7%, and the stock has reacted positively 90% of the time by an avg of 4%." Goldman Sachs maintains a Buy rating and $97 price target on NKE. NKE is trading at $88.10.