Shares of Berkshire Hathaway (BRK-A) (BRK-B) were upgraded to Buy from Hold by Edward Jones analyst James Shanahan in two separate research notes on Wednesday.
On BRK.A shares, Shanahan said they are upgrading after a sharp decline in recent months, which they attribute to broader concerns about financial markets and the economy.
"We believe that the sell-off has created an attractive entry point for long-term investors, as Berkshire revenues and earnings benefit from a diverse group of operating companies and investments. Meanwhile, we believe that higher interest rates, additional investment activity, and an acceleration in share-repurchase activity will provide additional support for earnings per share," wrote Shanahan.
On BRK.B shares, the analyst said they are adding the shares to its US Stock Focus List.
"Berkshire shares tend to outperform financial services peers during weak markets but underperform during strong markets. Due primarily to recent stock-market volatility, BRK shares have outperformed financial services peers over all three measurement periods," the analyst added.
By Sam Boughedda