UBS lowers Berkshire Hathaway stock price target citing EPS estimates

Published 03/06/2025, 15:06
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On Tuesday, UBS analysts adjusted their outlook for Berkshire Hathaway Inc . (NYSE:BRKa) (NYSE:BRK-B), reducing the price target for the company’s "B" shares to $591 from the previous $606 while maintaining a Buy rating. The decision reflects a revision in earnings per share (EPS) estimates, primarily due to a decreased forecast in investment income.

The analysts also revised the price target for Berkshire Hathaway (NYSE:BRKb)’s "A" shares, lowering it to $887,099 from $909,218. This adjustment considers the company’s current share trading relative to its intrinsic value, leading UBS to exclude share repurchases for the remainder of 2025 and 2026.

Despite the lowered price targets, UBS maintains a positive view on Berkshire Hathaway’s stock, pointing to its strong cash position of $347 billion and short-term investments. The company’s defensive business mix and manageable tariff exposure are seen as advantageous in the current uncertain macroeconomic environment.

UBS also highlighted GEICO’s potential to regain market share after several years of decline, which could enhance insurance earnings and float. This development is expected to support Berkshire Hathaway’s overall financial performance.

The revisions by UBS come as analysts reassess Berkshire Hathaway’s financial outlook amid changes in investment income forecasts and market dynamics.

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