The bearish downtrend in Gilead Sciences (GILD) looks overdone. Barron’s reported that Piper Jaffray views the cash-generating HIV drug supplier trades at cheap multiples. Both the analyst and the markets point to M&A activity for jump-starting Gilead’s growth. Value investors should watch this stock.Gilead grew exponentially after acquiring Pharmasset in 2011. This $11 billion bet proved a brilliant move, but it does not mean Gilead may do the same again. Biotech stocks generally command high multiples. Gilead must pay a premium and drain the $9.19 per share in cash it has on hand. At around 6.9x forward P/E multiples, draining cash, raising debt, and paying exorbitant money for a company is too risky. $GILD, Gilead Sciences, Inc. / 60 Gilead should accelerate its buyback, boost its dividend, and continue investing in its own operations. The HIV drug market is still benefiting from steady demand. Treatments for the HBV (hepatitis B) virus and HCV both have high demand. Although Merck (MRK) is developing MK-382 for HCV, Gilead has room to cut prices to grow market share.Gilead is cash rich, trades at a steep discount, and itself could be a buyout target. Still, if Gilead buys Incyte (INCY) or some other firm, Gilead actually becomes a more stock.