Shares of Google parent company Alphabet (GOOGL - Get Report)  were rising 1.1% to $1,166 Tuesday after the company was initiated with a buy rating and $1,350 price target by analysts at Needham. 

The price target represents a 17% upside from the stock's closing price on Monday. 

Alphabet could face growing pressure in coming years to break up its ubiquitous business, which could unlock tons of value for the company, according to Needham. 

The firm valued Alphabet's YouTube video sharing service at $140 billion using metrics used to value video streaming service Netflix (NFLX - Get Report) . Needham said that Google has a "network effect" that will help it create value for users across its network of services. 

The firm also said that fellow FAANG company Facebook (FB - Get Report) is Google's biggest threat, and that Facebook will have the advantage if Alphabet decides not to spin off any of its businesses. 

Alphabet and Facebook are key holdings in Jim Cramer's Action Alerts PLUS charitable trust