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On Tuesday, UBS analysts adjusted their price target for Berkshire Hathaway (NYSE:BRKa) stock, reducing it to $887,099 from the previous target of $909,218. The decision to lower the price target reflects modestly reduced earnings per share (EPS) estimates, primarily due to a lower forecast for investment income. Despite the price target adjustment, the analysts maintained a Buy rating on the stock.
The analysts explained that the revision also includes a lowered price target for Berkshire Hathaway’s "B" shares, now set at $591, down from $606. The adjustment factors in the exclusion of share repurchases for the remainder of 2025 and 2026, considering the current trading levels of Berkshire’s shares relative to their intrinsic value.
UBS analysts highlighted Berkshire Hathaway’s strong cash position, with $347 billion in cash and short-term investments, as a key factor in their continued optimism. They noted the company’s defensive business mix and manageable tariff exposure, which they believe make the shares attractive in an uncertain macroeconomic environment.
Additionally, the analysts pointed to GEICO’s potential market share gains as a positive development for Berkshire Hathaway. After several years of losing market share, GEICO is expected to bolster insurance earnings and float, contributing to the company’s overall performance.
The revised price target and analysis reflect UBS’s assessment of the company’s prospects amid changing market conditions, with a focus on investment income forecasts and strategic decisions regarding share repurchases.
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