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Investing.com - Keefe, Bruyette & Woods (KBW) raised its price target on Berkshire Hathaway (NYSE:BRKa) (NYSE:BRK-A) to $740,000 from $735,000 while maintaining a Market Perform rating following the company’s second-quarter earnings report.
Berkshire Hathaway reported second-quarter 2025 operating earnings per share of $7,760, exceeding both the Street’s estimate of $7,508 and KBW’s forecast of $7,428. The earnings beat primarily reflected strong performance in BNSF, Manufacturing, Service, and Retailing segments, along with favorable results in taxes and noncontrolling interests.
These positive factors were partially offset by weaker performance in Insurance Underwriting and Investments, as well as in the Utilities and Energy segments. KBW noted the absence of share repurchases during the quarter might temper positive market reaction to the earnings beat.
Based on the quarterly results, KBW revised its earnings per share estimates upward to $31,725 for 2025 and $32,430 for 2026, from previous estimates of $30,850 and $32,185 respectively. The firm also introduced an initial 2027 earnings per share estimate of $34,430.
The modest price target increase primarily reflects updated earnings estimates and peer valuations, with KBW forecasting lower expenses and taxes outpacing lower revenues across most of Berkshire’s business segments.
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