Alphabet Inc. faces growing antitrust scrutiny, and whereas a pressured breakup of the corporate will not be imminent, it wouldn’t be a doomsday state of affairs both, based on a Bernstein analyst.

The truth is, Google-parent Alphabet stands to be value extra damaged up, based mostly on Bernstein analyst Mark Shmulik’s sum-of-the-parts valuation. His base-case sum-of-the-parts calculation values Alphabet at $2,600 a share, about 23{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} above present ranges, whereas his bull case, “with out stretching estimates,” suggests the corporate could possibly be value $3,100 a share.

“Whereas we will debate the deserves and chances of breaking apart huge tech, we imagine the nuclear state of affairs is arguably value-accretive for Google,” he wrote. “And therein lies the relative cushion for proudly owning Google amidst rising scrutiny of huge tech.”

Learn: In Google antitrust effort, authorities could have saved the very best for final

Alphabet’s search enterprise represents nearly all of the corporate’s worth in Shmulik’s sum-of-the-parts valuation—at $1,499 a share within the base case and $1,651 a share within the bull case. However he additionally sees potential in “under-monetized property in YouTube and Maps, a market-leading app retailer globally, and a share-gaining Cloud franchise.” The alternatives in these companies “spotlight that there’s rather a lot to like about this enterprise, collectively or aside.”

The bottom-case math ascribes a per-share valuation of $1,499 for search, $61 for Alphabet’s community enterprise, $382 for the corporate’s YouTube enterprise, $335 for the Google Cloud enterprise, $140 for the {hardware} and play enterprise, and $75 for the “different bets” companies, whereas subtracting $85 a share in unallocated bills and including $190 a share in cash-less-debt.

See additionally: Huge Tech CEOs pounded over social media’s function in selling misinformation, extremism

For his bull case, he calculates a per-share worth of $1,651 for search, $76 for community, $496 for YouTube, $472 for Google Cloud, $173 for {hardware} and play, and $113 for different bets. On this mannequin, he additionally subtracts $85 a share for unallocated bills and provides $150 a share for cash-less-debt.

Shmulik additionally has a $1,700-a-share, bear-case state of affairs based mostly on this technique, and this mannequin, amongst different issues, ascribes adverse worth to the “different bets” assortment of companies, which incorporates self-driving unit Waymo and different earlier-stage ventures. Nonetheless, he says, “it’s arduous to imagine that we received’t see Waymo command some worth within the open market given [driverless-car company] Cruise lately raised at a ~$30 billion valuation.”

Whereas Shmulik stated that he and his crew “don’t anticipate a regulator-forced divestment anytime quickly,” there’s an opportunity that Alphabet would possibly take into account an “alternative to alleviate strain” if it noticed one. “If there was wherever that we may level to on spinning/promoting an asset, the Community enterprise is the place we’d look,” he wrote. This a part of the enterprise, which incorporates promoting publicity like Google AdSense and the DoubleClick Advert Trade, face some enterprise threat as cookies turn into much less dominant.

Shmulik has a $2,500 worth goal on Alphabet shares and an outperform ranking. The inventory has risen 20{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} over the previous three months because the S&P 500 has gained 6.7{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.

Right here’s how Alphabet could possibly be value $3,100 a share