UBS Lowers Berkshire Hathaway Price Target to $591, Maintains Buy Rating

UBS lowered its price target for Berkshire Hathaway (BRK-B) from $606 to $591, while keeping a Buy rating. Analyst Brian Meredith attributed the revision to Berkshire's conservative investment approach, prioritizing liquidity and risk mitigation. Despite this, he maintained a Buy rating due to the company's strong balance sheet and diversified investment portfolio, which supports long-term value.

UBS has revised its price target for Berkshire Hathaway (BRK-B) from $606 to $591, while maintaining a Buy rating. Analyst Brian Meredith attributed this adjustment to Berkshire's conservative investment approach, which prioritizes liquidity and risk mitigation. Despite the revision, Meredith kept the Buy rating due to the company's strong balance sheet and diversified investment portfolio, which support long-term value [1].

In his latest annual report, Berkshire Hathaway Chairman Warren Buffett highlighted the company's achievements over the past 60 years and acknowledged occasional mistakes. He reaffirmed confidence in Greg Abel as his successor, praising his ability to identify and act on investment opportunities. The report also mentioned a $9 billion increase in cash holdings in the last three months and a $26 billion tax bill [2].

Buffett emphasized the importance of deploying Berkshire's significant cash holdings in stocks rather than fixed income. He expects Greg Abel and future leaders to maintain the company's Japanese investments for decades, while exploring further collaboration with the five firms [3]. This strategy is supported by a favorable financial strategy, with projected annual dividend income of $812 million in 2025 outweighing the $135 million interest cost on its yen-denominated debt [4].

UBS's revised price target reflects a cautious approach to Berkshire's investment strategy, but it remains optimistic about the company's long-term prospects. The strong balance sheet and diversified portfolio continue to be key drivers of Berkshire's value, despite the conservative approach to investments.

References:
[1] https://www.cnbctv18.com/business/companies/berkshire-hathaway-annual-report-live-updates-warren-buffet-letter-shareholders-address-japan-trading-houses-liveblog-19563175.htm
[2] https://www.cnbctv18.com/business/companies/berkshire-hathaway-annual-report-live-updates-warren-buffet-letter-shareholders-address-japan-trading-houses-liveblog-19563175.htm
[3] https://www.cnbctv18.com/business/companies/berkshire-hathaway-annual-report-live-updates-warren-buffet-letter-shareholders-address-japan-trading-houses-liveblog-19563175.htm
[4] https://www.cnbctv18.com/business/companies/berkshire-hathaway-annual-report-live-updates-warren-buffet-letter-shareholders-address-japan-trading-houses-liveblog-19563175.htm