Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UBS raises stock price target for Warren Buffett's Berkshire Hathaway

Published 21/10/2024, 16:24
© Reuters.
BRKb
-
BRKa
-

Investing.com -- Analysts at UBS have raised their price target for shares in Berkshire Hathaway (NYSE:BRKa) (NYSE:BRKb), arguing that Warren Buffett's investment conglormerate is currently trading at a "1% discount to its intrinsic value."

In a note to clients on Sunday raising their stock price target for Berkshire to $538 from $506, the analysts also lifted their forecast for the company's third-quarter earnings per share, citing "a modestly lower catastrophe loss estimate" and an improvement in underwriting results for reinsurance.

However, an expected uptick in catastrophe losses in the fourth quarter due to the recent devastating Hurricane Milton that hit parts of the US South is seen denting Berkshire's annual projected per-share income.

Insurance is a key portion of the Berkshire's business, with firms like Geico, National Indemnity and General Re all subsidiaries of the company. In May, Berkshire also disclosed a major stake in insurer Chubb (NYSE:CB) that was worth a reported $6.7 billion.

However, Berkshire still maintains a wide-range of investments across a broad range of sectors, from railroads and banks to running shoes and ice cream.

In late August, Berkshire's market capitalization closed above $1 trillion for the first time, giving it a valuation to rival technology giants like iPhone-maker Apple (NASDAQ:AAPL) and artificial intelligence-chip designer Nvidia (NASDAQ:NVDA). It has since moved back down below that mark to roughly $998.6 billion.

For the first half of the year, Berkshire, which has been run by the 94-year old Buffett since 1965, recorded $22.8 billion in profit, an increase of 26% from 2023.

The UBS analysts estimated that Berkshire's common equity portfolio grew by 7% in the third quarter, mostly thanks to an uptick in its stake in Apple, credit card firm American Express (NYSE:AXP) and food and beverage titan Coca-Cola (NYSE:KO). Berkshire is also tipped to roll out almost $1.9 billion in share buybacks during the quarter, the analysts said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.