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Investing.com - UBS raised its price target on Berkshire Hathaway Inc . (NYSE:BRKa) (NYSE:BRK-B) to $597.00 from $595.00 while maintaining a Buy rating after the company reported better-than-expected adjusted operating earnings.
Berkshire Hathaway (NYSE:BRKb) posted adjusted operating income of $7,760 for "A" shares and $5.17 for "B" shares, exceeding UBS estimates of $7,595 for "A" shares and $5.06 for "B" shares. The results were approximately 2% above UBS expectations and surpassed consensus forecasts despite a 4% year-over-year decline.
The company’s earnings were negatively impacted by lower underwriting results from its Insurance segment. Berkshire also recorded a $3.8 billion write-down on its stake in Kraft Heinz (NASDAQ:KHC), or $5 billion pre-tax, which reduced the carrying value of the investments to fair value.
Berkshire Hathaway noted uncertainty regarding the outlook for tariffs and the "Big Beautiful Bill," which could affect federal energy-related tax policies and impact Berkshire Hathaway Energy’s tax rate.
GEICO, the company’s auto insurance subsidiary, continues to grow and maintain strong profitability, providing a positive element in the earnings report.
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