UBS Raises Price Target for Berkshire Hathaway Amid Aggressive Buybacks
UBS has raised its price target for Berkshire Hathaway Class A shares to $877,848 from $854,596 and set a new target of $585 for Class B shares. The increase follows aggressive stock repurchases by the conglomerate between April 15 and July 14 amounting to approximately $8.5 billion, according to UBS analysis based on recent filings. The bank also raised its second-quarter earnings estimates due to stronger performance at Berkshire's railroad unit BNSF, lower catastrophe losses in insurance operations, and the closing of key deals like the Taylor Morrison acquisition and a $10 billion investment in Alphabet. For 2026 and 2027, UBS increased operating earnings forecasts for Class B shares by 1.3% to $21.05 and 0.8% to $21.32 per share due to higher assumed buybacks. UBS anticipates narrowing underwriting margins at GEICO as it focuses on growth strategies, while reinsurance premiums are expected to rise with a new quota-share deal with Tokio Marine.
Topics: BNSF performance insurance underwriting price target adjustment stock buyback