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On Monday, Keefe, Bruyette & Woods maintained their Market Perform rating on Berkshire Hathaway (NYSE:BRKa) shares (NYSE:BRK-A) and increased the price target to $775,000 from the previous $750,000. This adjustment comes after Berkshire Hathaway’s fourth-quarter operating earnings per share (EPS) of $10,102 surpassed both the consensus estimate of $6,932 and Keefe’s own forecast of $7,078. The outperformance was attributed to stronger-than-anticipated property and casualty (P&C) underwriting and insurance investment income, alongside higher earnings from other business segments. These gains were partially balanced by lower-than-expected income from the company’s Railroads, Utilities, and Energy, as well as its Manufacturing, Service, and Retailing sectors.
The analyst at Keefe, Bruyette & Woods expressed optimism about the impact of the EPS beat and GEICO’s robust core underwriting results on Berkshire Hathaway’s stock performance, anticipating a positive movement in the shares on Monday. In light of the recent earnings report, the firm has revised its 2025 EPS estimate for Berkshire Hathaway upwards to $31,600 from $30,140. However, they have slightly reduced the 2026 EPS projection to $32,660 from $32,720, taking into account the expectation of higher insurance income and lower non-insurance income for the future.
The increase in the price target to $775,000 reflects the firm’s revised expectations and confidence in Berkshire Hathaway’s earnings growth potential. Despite the adjustment in the price target, Keefe, Bruyette & Woods has decided to maintain the Market Perform rating on the stock, suggesting that they believe the company’s shares are currently valued appropriately in the market.
Berkshire Hathaway’s fourth-quarter earnings report highlighted the company’s ability to generate strong results in its insurance operations, which appears to be a key driver for the firm’s optimistic earnings projections. The detailed analysis by Keefe, Bruyette & Woods factors in various aspects of Berkshire’s diversified business portfolio and the different income streams that contribute to the conglomerate’s overall financial health.
Investors and market watchers will likely monitor Berkshire Hathaway’s stock as the market opens on Monday to observe the anticipated positive reaction to the company’s strong earnings and the raised price target by Keefe, Bruyette & Woods.
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