Investment Firm Raises Price Target For Warren Buffett's Berkshire Hathaway To $750,000 Despite Q3 Earnings Miss

Investment banking firm Keefe Bruyette has raised its price target for Berkshire Hathaway BRK BRK to $750,000, even though the company fell short of third-quarter earnings expectations. The firm continues to hold a Market Perform rating on the stock.

What Happened: Berkshire Hathaway’s third quarter operating earnings per share came in at $7,023, missing the Street’s forecast of $7,335. The shortfall was primarily due to weaker-than-expected results in property and casualty underwriting, as well as in the Manufacturing, Service, and Retailing sectors. Additionally, the company faced higher “other” losses than anticipated.

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Despite these setbacks, the Warren Buffett-led company saw stronger-than-expected income from its Railroads, Utilities, and Energy sectors, along with robust insurance investment income. Keefe Bruyette noted that the earnings miss and the lack of share repurchases might put pressure on Berkshire’s shares as the week progresses.

Why It Matters: Berkshire Hathaway highlighted that the decline in third-quarter operating earnings was driven by weaknesses in its insurance underwriting segment. The Omaha-based conglomerate’s quarterly operating earnings of $10.09 billion marked a decline of over 6% compared to the previous year.

Furthermore, as of the end of September, approximately 70% of Berkshire’s aggregate fair value was concentrated in five companies, underscoring its investment strategy.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari