Piper Sandler Names 2025 Top Picks

Investing.com — Piper Sandler has selected Google (NASDAQ:GOOGL) as its top mega-cap pick for 2025, driven by a product resurgence and strong survey data indicating robust growth opportunities.

Recent surveys underscore Google's prominent standing in the AI sector, with tools like Gemini and Performance Max contributing significantly to ad spend growth. Piper analysts noted that Google Cloud Platform (GCP) was identified as the "most strategic" AI vendor by Chief Information Officers (CIOs).

Analysts led by Thomas Champion expressed optimism about next year's estimates, anticipating ad revenue growth of approximately 10%. They expect continued elevated growth in Cloud and YouTube subscriptions.

Currently, Google’s valuation stands at 19 times its 2025 earnings, presenting an appealing entry point. Analysts reaffirmed an Overweight rating on the stock, with a price target of $210, reflecting a 21% upside from current levels.

In the mid-cap category, Piper Sandler designated Zillow Group Inc (NASDAQ:ZG) as its top pick, citing evidence that Zillow’s Enhanced Markets tools are boosting transaction share and positioning the company to surpass market growth rates. The analysts pointed to Zillow’s quick ramp-up in the mortgage segment and reasonable historical valuation, maintaining an Overweight rating with a price target of $93.

For small caps, Vimeo (NASDAQ:VMEO) earned the title of top small-cap stock for 2025, receiving an upgrade to Overweight. Piper Sandler praised the company's successful cost restructuring over the past two years and the thriving enterprise segment, expected to yield over $100 million in annual run rate. They noted this would likely return the business to growth irrespective of the Self-Serve outcome. They acknowledged the new CEO, Moyer, for accelerating execution.

Conversely, Pinterest (NYSE:PINS) and IAC (NASDAQ:IAC) were downgraded to Neutral. Analysts raised concerns over Pinterest’s revenue growth trajectory and unresolved issues following recent earnings releases, reducing its price target to $36 from $41. For IAC, they cited an unappealing asset configuration after the Angi spin-off and diminished confidence in turnaround prospects, lowering the price target to $54 from $68.