Shares of the investment bank heavyweight are up 30% year-to-date.
"A few solid quarters in a row seem likely and could help GS shares re-rate higher", writes O'Connor.Goldman's third quarter topline should get a lift from higher fixed income trading revenues and a rebound in the performance of its investment and lending division thanks to higher market levels. Meanwhile in the fourth quarter, the bank is likely to benefit from compensation expense reversals, while the first quarter of 2013 will be seasonally strong.. O'Connor expects Goldman to report an earnings per share of $2.70 excuding a DVA hit of 60 cents. Including DVA, EPS is expected to be $2.10 versus $2.08 consensus. Goldman reports October 16.