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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.
May 26, 2025 4:35 AM

04:10 PM EDT, 05/08/2025 (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:

We keep our 12-month target of $535, valuing shares at 24x our 2026 operating EPS estimate of $22.50 (cut by $1.25), versus the three-year average forward multiple of 22x. We lift our 2025 EPS by $0.05 to $2.67 after BRK posted Q1 EPS of $4.47 versus $5.20, compared to our $4.42 EPS estimate and the $4.72 consensus view. Results reflected a fractional drop in operating revenues (versus our 4% to 7% growth forecast) and a 14% drop in operating profits amid 49% lower insurance profits, 11% higher investment income, a 6.2% uptick in BNSF profits, and 53% higher Berkshire Hathaway Energy earnings. We don't see Q1 insurance results as a run rate, but our view is tempered by the commercial lines underwriting erosion. We cut our 2025 revenue forecast to a 3% to 5% increase. Trading above historical averages, with tepid top-line growth, a mixed profit outlook in several core units, a lack of any YTD share repurchases, and the likely extraction of the "Buffett" premium, we view the shares as fairly valued.

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