Berkshire Hathaway 's (NYSE:BRKa) (NYSE:BRKb) stock target is raised at UBS after the investment behemoth delivered better-than-expected earnings.
Analysts also lauded “the best annual meeting in years” given the quality of questions and insightful answers.
As a result, the price target goes to $565,580, offering a ~11% upside potential from current levels. Berkshire shares are up about 1.5% on Monday.
Warren Buffett’s company reported an operating income of $5,537 for "A" shares and $3.69 for "B" shares".
As for the shareholder meeting, the analysts' key takeaways include:
“1) GEICO needing an upgrade in technology, data and analytics with more work necessary to return to target profitability (96% combined ratio). This is a positive for PGR.
2) Berkshire Re not writing significant property cat at 1/1 renewals, but instead significantly increasing exposure at 4/1 to Florida reflective of the "hardening" property cat reinsurance market;
3) BNSF margins (have improved but) still lag its peers as the company balances savings with customer service;
4) Berkshire does not plan on buying Occidental (NYSE:OXY); and
5) Buffet has structured the distribution of his BRK ownership so that it will take 10-15 yrs for it to be fully distributed."
Finally, the analysts continue to see BRK shares as “an attractive play in an uncertain macro environment.”
“We estimate shares trade at a ~15% discount to intrinsic value,” the analysts said in a client note.