Goldman Sachs Upgrades Conviction Lists with Vertex and Three European Stocks

Goldman Sachs has updated its Conviction Lists for September, adding Vertex Pharmaceuticals to the US list and three European names. The US list now includes 23 names, with Interactive Brokers removed. In Europe, Adyen, RWE, and Talanx were added, while Enel, Wise, Hannover Re, and Zalando were dropped.

Analyst Salveen Richter says Vertex is well-positioned for long-term growth due to its execution of multi-billion dollar opportunities across various therapeutic areas. The proposed acquisition of Crinetics Pharmaceuticals would add a fifth pillar in endocrinology.

The European additions are driven by AI-related tailwinds, with Adyen benefiting from its integrated technology platform and partnerships with OpenAI, Google, and Microsoft. RWE is expected to re-rate as it transforms into a vertically integrated energy powerhouse, anchored by grid investments and potential data center deals in Europe and the US.

Talanx carries a €141 target price, representing 13% upside from its recent trading level near €125. The insurer's Retail International arm is seen as an underappreciated growth engine, with gross written premiums expected to rise 8-10% annually through 2030.