Goldman Sachs Adds Vertex, RWE to September Conviction Lists

Goldman Sachs has updated its closely watched conviction lists for September, adding U.S. biotech firm Vertex Pharmaceuticals and making several changes to its European selections, including the additions of German utility RWE and Dutch payments firm Adyen. The refresh highlights the investment bank's highest-conviction stock picks heading into the autumn.

Vertex Pharmaceuticals Joins U.S. List

In the United States, Goldman added Vertex Pharmaceuticals (VRTX) to its conviction list while removing online brokerage Interactive Brokers (IBKR). The U.S. list now comprises 23 names.

According to a note from Goldman Sachs analyst Salveen Richter, the large-cap biotech company is "well-positioned for long-term growth." The bank cited the potential for up to five multi-billion dollar opportunities in areas including cystic fibrosis, pain, and kidney disease, along with a potential fifth pillar in endocrinology. Other prominent companies remaining on the U.S. list include Microsoft (MSFT), UnitedHealth (UNH), Wells Fargo (WFC), and ConocoPhillips (COP).

European List Sees Major Refresh

The bank's European conviction list saw a more substantial overhaul with three additions and four removals. The new companies added are:

• German utility RWE (RWEG)
• Dutch payments processor Adyen (ADYEN)
• German insurer Talanx (TLXGn)

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To make room, Goldman removed Italian utility Enel (ENEI), British fintech Wise (WISEa), German insurer Hannover Re (HNRGn), and e-commerce firm Zalando (ZALG).

Goldman's rationale for RWE, according to analyst Alberto Gandolfi, is an expected re-rating as it shifts into a "vertically integrated powerhouse." The bank forecasts approximately 17% annual EPS growth for the utility through 2031. For Adyen, Goldman noted its technology stack remains a key differentiator, while Talanx's Retail International division was described as an "underappreciated growth driver."

What It Means for Investors

Conviction lists from major investment banks are influential market indicators, often scrutinized by institutional and retail investors for high-potential investment ideas. These selections represent the firm's most confident calls and can signal shifting sentiment on specific sectors.

The September update suggests a strategic tilt towards companies with distinct growth drivers. The addition of Vertex points to confidence in biotechnology innovation, while the changes in the European utility and fintech sectors reflect a preference for specific business models and competitive advantages.