Berkshire Hathaway Analyst Raises Forecasts After Q1 Results — But Remains Cautious
Portfolio Pulse from Priya Nigam
Berkshire Hathaway Inc. (NYSE:BRK) shares have seen a year-to-date increase but faced a 4% decline over the past month. Following Q1 results, analyst Meyer Shields of Keefe, Bruyette & Woods maintained a Market Perform rating but raised the price target from $645,000 to $660,000. The earnings beat was attributed to GEICO's margin expansion, though non-Insurance earnings were soft. Shields adjusted his 2024 and 2025 earnings estimates upwards, citing strength in insurance and share repurchases, but expressed caution due to non-Insurance earnings and management succession risks.
May 06, 2024 | 5:32 pm
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Berkshire Hathaway's Q1 results surpassed expectations, mainly due to GEICO's performance. Analyst Meyer Shields raised the price target to $660,000 but remains cautious due to soft non-Insurance earnings and management succession risks.
The positive adjustment in Berkshire Hathaway's price target reflects confidence in the company's insurance operations, particularly GEICO's performance. However, the cautious outlook due to soft non-Insurance earnings and management succession risks could temper investor enthusiasm, suggesting a balanced short-term impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100