What Are Wall Street Analysts' Target Price for Berkshire Hathaway Stock?

Headquartered in Omaha, Nebraska, Berkshire Hathaway Inc. (BRK.B) is a diversified multinational holding company with a prominent presence across various industries. With a market cap of $1 trillion, Berkshire Hathaway operates a wide range of businesses, including insurance, utilities, manufacturing, and retail, while holding substantial equity investments in leading companies.

Berkshire Hathaway stock has underperformed the broader market over the past year. BRK.B has gained 32% over this time frame, while the S&P 500 Index ($SPX) has risen 32.3%. However, in 2024, BRK.B stock is up 31.1%, compared to SPX’s 24.7% returns on a YTD basis.

Narrowing the focus, BRK.B’s underperformance looks more pronounced than the iShares U.S. Financial Services ETF (IYG). The exchange-traded fund has gained 48.7% over the past year and 33.1% on a YTD basis.

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Shares of Berkshire Hathaway dipped 2.2% in the trading session after the release of its Q3 earnings on Nov. 2. The company reported operating earnings of $10.1 billion, a 6.2% year-over-year decline, impacted by a 0.2% drop in revenues to $93 billion and a 0.7% rise in costs to $81.2 billion, driven by increased insurance underwriting and administrative expenses. 

However, the company reported net earnings attributable to shareholders of $26.3 billion in the quarter, a significant turnaround from a $12.8 billion loss in the same period last year. This improvement was driven by $16.2 billion in investment gains.

For the current fiscal year, ending in December, analysts expect BRK.B to report an EPS growth of 14.1% to $19.60 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.  

Among the six analysts covering BRK.B stock, the consensus rating is a “Moderate Buy.” That’s based on two “Strong Buy” ratings and four “Holds.”

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This configuration has been consistent over the past three months.

UBS raised Berkshire Hathaway's price target to $538, which indicates a 15% upside from the current levels, citing improved Q3 earnings prospects due to lower catastrophe losses and better reinsurance underwriting. 

The mean price target of $477.75 represents a 2.1% premium to BRK.B’s current price levels. The Street-high price target of $531 suggests an upside potential of 13.5%.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.