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Research Alert: CFRA Keeps Hold Opinion On Class B Shares Of Berkshire Hathaway Inc.
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Research Alert: CFRA Keeps Hold Opinion On Class B Shares Of Berkshire Hathaway Inc.
Mar 14, 2025 8:08 AM

10:50 AM EDT, 03/14/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Published, unconfirmed reports indicate Berkshire Hathaway ( BRK/A ) is in talks to sell HomeServices of America (HSA) to Compass Inc. (COMP 9 NR), following HSA's $107M operating loss in 2024 and a $250M settlement related to brokerage commissions. With revenues of $4.4B representing just over 1% of Berkshire's $371.4B operating revenues, the potential sale's significance lies not in its financial impact, but in Berkshire's unusual willingness to divest assets. The deal could signal either a strategic shift toward streamlining Berkshire's decentralized structure, or a one-off transaction for an underperforming unit. While Berkshire maintains a substantial cash position of $321B, we believe recent share strength reflects investors' flight to quality amid market volatility. We maintain our Hold rating, with shares trading at 25x our 2025 EPS estimate of $20.62 (vs. the 22x three-year average), factoring in expected 4%-7% organic revenue growth and $1.3B in Q1 2025 California wildfire claims.

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