Here's Why Bank Of America Added Facebook To The "US 1 High-Conviction List"

In a report published Tuesday, Bank of America analyst Justin Post added shares of

to the "US 1 high-conviction list" which represents a "collection of Bank of America Merril Lynch's top investment ideas." According to Post, Facebook is a top idea in the Internet space given its mobile exposure and growing time share in the space. The company has also demonstrated improvements in its ad targeting, video traction while it is also ramping Instagram (and new platforms) ad growth. Post continued that Facebook represents a "market share gainer story" as the company is expected to capture 13 percent of the U.S. and Canada online advertising market share in the near-term and further expand its share to 15 percent in 2016. Moreover, the company's global online advertising market share is expected to grow from its current 11 percent to 13 percent in 2016. "We see Facebook as the best positioned Internet media company to capitalize on media sector trends as we expect the company to take disproportionate share of ad industry spend as Facebook remains a top beneficiary of mobile Internet adoption," Post wrote.

Post commented that Facebook's usage trends remain "favorable" and offered the following trends and statistics to support his bullish thesis:

Shares remain Buy rated with an unchanged $105 price target.