"We initiate coverage of Alphabet with a Buy rating and $1,350 price target based on: 1) sum-of-the-parts analysis; 2) estimated YouTube value; and 3) the moat created by GOOGL's Network Effects...We conclude that GOOGL should trade at $1,350 per share in 12 months, which is where we set our price target... If GOOGL were to spin off 10% of its largest 2 or 3 businesses (YouTube, Cloud, etc.) we believe this would unlock significant hidden value while keeping control, accounting consolidation, and 90% of the valuation upside for GOOGL... Importantly, we see valuation downside for the "do nothing" option since FB is GOOGL's single biggest FAANG menace (our view), and FB already has a lower cost of equity..."