Goldman Sachs Adds Gilead Sciences (GILD) to the Conviction Buy List on Acquisition Strategy

Goldman Sachs added Gilead Sciences (NASDAQ: GILD) to its Conviction Buy List with a price target of $46, suggesting 17% upside. The firm said Gilead's acquisition strategy could be "transformational".

The proposed acquisition of Pharmasset (NASDAQ: VRUS) shows that Gilead is "embracing a capital allocation strategy that should change it from a value story to a growth story," the analyst said.

Goldman compares the strategy to Biogen Idec (Nasdaq: BIIB), which led to 50% upside in the stock since April 3, 2011. In contrast, Amgen's (Nasdaq: AMGN) stock has been stagnant for years.

For an analyst ratings summary and ratings history on Gilead Sciences click here. For more ratings news on Gilead Sciences click here.

Shares of Gilead Sciences closed at $39.28 yesterday.

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