UBS maintains Buy rating on Berkshire Hathaway stock

Published 05/05/2025, 16:08
© Reuters

Monday, UBS analyst Brian Meredith (NYSE:MDP) maintained a Buy rating on Berkshire Hathaway Inc . (NYSE:BRKa) (NYSE:BRK-B) with a steady price target of $606.00. Meredith’s comments followed the announcement by Warren Buffett that he plans to resign as CEO by the end of 2025, recommending Greg Abel as his successor. Buffett, who will still offer strategic advice, assured he would retain his shares in the company.

The transition of leadership to Abel was anticipated, although the timing was unexpected. Meredith highlighted that Buffett’s departure comes at a time when Berkshire Hathaway (NYSE:BRKb) has grown less dependent on his singular investment skills, thanks to its diversified portfolio of businesses generating robust cash flows. The analyst expects that the company’s operations will continue without significant change, with its culture and strategy remaining consistent under Abel’s leadership.

Despite the challenge of matching Buffett’s legendary investment acumen, Meredith notes that Berkshire Hathaway’s structural benefits of "permanent capital" and its broad spectrum of businesses provide a solid foundation for gathering information to support investment decisions. The question of who will assume the primary investment management role under Abel remains open.

Meredith’s reiteration of the Buy rating reflects confidence in Berkshire Hathaway’s enduring business model and leadership continuity. Buffett’s commitment to keeping his shares is seen as a positive signal for the company’s stability and future prospects.

As the market processes this high-profile leadership transition, the focus will be on how Abel steers the conglomerate forward, maintaining the legacy of its esteemed predecessor while carving out his own path in the investment world.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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
© 2007-2025 - Fusion Media Limited. All Rights Reserved.