Investing.com -- Piper Sandler has named Google (NASDAQ:GOOGL) as its top mega-cap pick for 2025, a move driven by a product-driven resurgence and strong survey data pointing to robust growth opportunities.
The firm's recent surveys highlight Google's leading position in the AI Space, with tools like Gemini and Performance Max emerging as standout contributors to ad spend growth.
Piper analysts note that Google Cloud Platform (GCP) “was named the “most strategic” AI vendor” among Chief Information Officers (CIOs).
“Estimates into next year look achievable, especially ad revenue at ~10%, while Cloud & Youtube Subscriptions will continue to show elevated growth,” analysts led by Thomas Champion added.
Moreover, Google’s valuation, trading at 19 times its 2025 earnings, presents an attractive entry point relative to the broader market, analysts said. They reiterated its Overweight rating on the stock, with a price target of $210, representing a 21% upside from current levels.
In the mid-cap space, Piper Sandler selected Zillow Group Inc (NASDAQ:ZG) as its top pick. The firm pointed to "proof points" that Zillow’s Enhanced Markets tools are driving higher transaction share, with the company positioned to outpace market growth rates.
The analysts also noted Zillow’s rapid mortgage segment ramp-up and reasonable valuation relative to its historical levels, maintaining an Overweight rating with a $93 price target.
Meanwhile, Vimeo (NASDAQ:VMEO) was named the top small-cap stock for 2025, earning an upgrade to Overweight.
Piper Sandler highlighted the company’s successful cost restructuring over the past two years and the flourishing enterprise segment, which now accounts for over $100 million in annual runrate. This “will likely return the business to growth regardless of the outcome in Self-Serve,” the firm noted.
“New CEO Moyer has quickened the pace of execution,” it added.
On the other hand, Pinterest (NYSE:PINS) and IAC (NASDAQ:IAC) were both downgraded to Neutral.
Analysts expressed concerns about Pinterest’s revenue growth trajectory and unresolved questions following recent earnings reports, lowering its price target to $36 from $41.
For IAC, the firm cited an uncompelling asset configuration post-Angi spin-off and reduced confidence in its turnaround prospects, cutting the price target to $54 from $68.