Why Wall Street Has Positive Views on Berkshire Hathaway in 2Q18

Wall Street’s views

Berkshire Hathaway’s (BRK.B) diversified portfolio has allowed it to command better ratings, especially in moderate-to-high growth scenarios. Whereas the company could benefit from lower tax, new accounting rules to mark portfolio investments at current prices could bring earnings volatility.

Asset managers (XLF) are expected to see subdued portfolio growth this year due to higher valuation levels, trade war concerns, and interest rates. Berkshire has a next-12-month price target of $348,875, implying an 18.0% rise based on its current price. Of the five analysts covering Berkshire Hathaway, three have recommended “strong buy” or “buy,” and two have recommended “hold.”

Why Wall Street Has Positive Views on Berkshire Hathaway in 2Q18

Competitors’ ratings

  • Of the 19 analysts covering AIG (AIG), ten have recommended “buy” or “strong buy,” seven have recommended “hold,” and two have recommended “underperform” or “sell.” Their target price for AIG is $67.79, implying a 27.2% rise.
  • Of the 17 analysts covering General Electric (GE), seven have recommended “buy” or “strong buy,” six have recommended “hold,” and four have recommended “underperform” or “sell.” They have revised their target price for GE downward to $17.40, implying a 23.7% upside.
  • Of the 19 analysts covering Chubb (CB), 16 have recommended “buy” or “strong buy,” and the remaining three have recommended “hold,” “underperform,” and “sell,” respectively. Their target price for CB is $161.94, implying a 22.0% rise.