Berkshire Hathaway Stock Reaches New Highs, Surpassing Tesla

The conglomerate Berkshire Hathaway (BRK) saw its share prices hit all-time highs on Monday after the company released its annual shareholder letter from CEO Warren Buffett.

In light of this report, an analyst has indicated that there is potential for further gains ahead.

The Analyst’s Viewpoint

Meyer Shields, an analyst from Keefe, Bruyette & Woods, has maintained a Market Perform rating on Berkshire Hathaway's Class A shares (BRK-A) while raising the price target from $750,000 to $775,000.

Shields noted that Berkshire Hathaway surpassed market estimates for operating earnings per share in the last quarter, largely due to better-than-expected performance in insurance underwriting and income.

A standout was the insurance segment, particularly results from the well-known GEICO division, which compensated for weaker outcomes in other sectors, including railroads, utilities, and energy.

In the consumer products division, Jazwares was identified as a factor for lower revenue, which balanced out the gains seen in apparel, footwear, and Duracell brands.

Future Expectations

The analyst has revised 2025 earnings per share estimates upwards based on enhanced insurance income. Shields expressed optimism that the positive earnings surprise and GEICO's solid performance could bolster Berkshire's shares in the days following the report.

Despite the price target increase, the Market Perform rating remains, as Shields pointed out potential risks, such as ongoing economic uncertainties and succession management issues facing the company.

"We do not recommend Berkshire's stock over broader indices," Shields concluded.

While the overall size and diversification of Berkshire imply performance that aligns with the S&P 500, the analyst remains cautious regarding the company’s non-insurance sectors, predicting more growth and improvement starting in 2026.

Key Stock Movements

Shares of Berkshire Hathaway climbed by 3.93%, reaching $747,000 on Monday, even hitting an all-time high of $749,611.40 during the trading day. This newfound valuation places the company at $1.07 trillion, surpassing Tesla to become the eighth highest-valued public company globally.

Over the past year, Berkshire stock has increased by 21%, outpacing the 18.3% growth of the SPDR S&P 500 ETF Trust, which tracks the S&P 500 index.

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Berkshire, Stocks, Buffett