Analyst Lowers Price Target for Berkshire Hathaway
Analyst Brian Meredith at UBS has recently adjusted the price target for Berkshire Hathaway (BRK.B) Class B shares. While maintaining a buy rating on the stock, Meredith has revised the price target from $606 to $591 per share, according to a report by CNBC.
Reasons for Price Target Adjustment
In his investment note, Meredith cited expectations of reduced investment income and the absence of stock buybacks in the current year and 2026 as the primary reasons for the downward revision. Despite this, he remains optimistic about the company’s prospects in the uncertain macroeconomic environment.
He stated, “We continue to believe BRK’s shares are attractive in an uncertain macro environment with $347 billion of cash and [short-term] investments, a defensive business mix, and manageable tariff exposure.”
Berkshire Hathaway’s Investment Strategy
Recent data indicates that Berkshire Hathaway’s CEO Warren Buffett has allocated a significant portion of the company’s funds into safe-haven assets, particularly short-dated Treasuries. The firm’s holdings in short-dated Treasuries have seen a notable increase, surpassing Taiwan’s holdings in US debt.
Simultaneously, Berkshire Hathaway has been reducing its stakes in major banking institutions such as Citigroup, Bank of America, and Capital One. The firm has completely divested from Citigroup, sold a substantial number of Bank of America shares, and trimmed its holdings in Capital One.
Current Stock Performance
As of the latest update, BRK.B is trading at $493 per share. The stock’s performance is closely monitored amidst the evolving market conditions and Berkshire Hathaway’s strategic investment decisions.
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