UBS has lowered its price target on Berkshire Hathaway’s Class A shares to $887,099 from $909,218. The investment firm cited reduced earnings per share projections for 2025 and 2026 as the reason behind the adjustment. Despite the lower target, UBS maintains a Buy rating on Berkshire Hathaway’s stock.
The firm believes the company’s substantial cash reserves, totaling $347 billion, and its defensive business mix make it an attractive investment in the current uncertain macroeconomic environment. An analyst from UBS expressed confidence in Berkshire Hathaway’s shares, stating they continue to be appealing despite the revised target. The analyst emphasized the company’s strong position to navigate various economic conditions due to its liquidity and diversified portfolio.
Berkshire Hathaway’s earnings per share estimates for 2025 and 2026 were reduced to $29,882 and $32,972, respectively.
Ubs lowers Berkshire Hathaway target
This is down from earlier projections of $31,789 and $33,355.
The decrease is largely attributed to a decline in investment income resulting from lower dividends and cash yields. With Berkshire’s shares trading at a 9% premium to their intrinsic value, Warren Buffett and his successor are not planning share repurchases unless stock prices drop. However, the company’s insurance subsidiary, GEICO, is expected to improve its underwriting results by 2027, potentially boosting Berkshire’s insurance earnings despite other pressures.
Berkshire Hathaway, led by renowned investor Warren Buffett, is often viewed as a stable choice for investors seeking a resilient stock during volatile market periods. The company’s significant cash pile and measured risk exposure make it an appealing option for those looking for steady investment opportunities. The investment community continues to monitor Berkshire Hathaway closely, anticipating how the new leadership will steer the conglomerate and manage its robust cash portfolio once Warren Buffett steps down.
