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Morgan Stanley analyst Brian Nowak told clients in note today that Alphabet's (GOOGL) - Get Alphabet Inc. Report Waymo, the firm's autonomous car unit, could potentially be worth $70 billion and that the massive potential has not been adequately reflected in the firm's current stock price.

Nowak reiterated his "Overweight" rating on Alphabet's stock and $1,050 price target.

"Waymo is a potential spin-out candidate (over time) and our scenario analysis shows how Waymo could be worth $70bn+...adding ~12%+ to GOOGL's current EV [enterprise value]," Nowak wrote. "We do not believe Waymo or any of the 'Other Bets' are currently being reflected in GOOGL's share price."

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For comparison, Uber is estimated to be valued at around $50 billion to $70 billion. The market value for Ford (F) - Get Ford Motor Company Report is about $44 billion. General Motor's (GM) - Get General Motors Company Report market value is currently about $50 billion.

(Alphabet is a core holding in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)