Berkshire Hathaway Stock Reaches New Heights, Leaving Tesla Behind: Analyst Predicts Further Growth

The conglomerate Berkshire Hathaway has achieved an impressive milestone as its shares reached all-time highs on Monday. This surge came shortly after the release of the company's annual shareholder letter penned by CEO Warren Buffett.

An analyst has expressed optimism about the potential for further growth following this report.

The Analyst Insight: In a recent note, Meyer Shields from Keefe, Bruyette & Woods adjusted the price target for Class A shares (BRK-A), raising it from $750,000 to $775,000. While maintaining a Market Perform rating, Shields emphasized that there are still some cautious factors to consider regarding future gains.

This adjustment in price target follows Berkshire Hathaway's performance that exceeded market expectations for operating earnings per share in the fourth quarter. Shields noted that this positive outcome was largely due to better-than-anticipated insurance underwriting and income, particularly from the company’s GEICO division, which played a significant role in offsetting underwhelming results from other sectors such as railroads, utilities, and energy.

In the consumer products segment, while brands like Duracell, apparel, and footwear made positive contributions, the analyst remarked on the disappointing revenue from Jazwares, which impacted the overall results in this sector.

Based on the increased insurance income, Shields has revised the earnings per share estimates for 2025 upwards. He stated, "We expect the EPS beat and GEICO's strong underwriting results to drive an increase in BRK's stock on Monday." However, he also cautioned that ongoing uncertainties in the macroeconomic environment and potential management succession issues could pose risks for the company moving forward.

Despite raising the price target, the analyst's Market Perform rating remains in place, advising that Berkshire Hathaway should not be favored over broader indices. He believes that while Berkshire's size and diversification indicate it will likely perform in line with the S&P 500, there is hesitance about the growth prospects of its non-insurance divisions, which may see better expansion and margin opportunities in 2026.

In regards to Buffett's recent letter to shareholders, Shields described it as concise and lacking significant new insights.

Berkshire Hathaway's Stock Performance

On Monday, Berkshire's stock saw an increase of 3.93%, reaching $747,000 and hitting a peak of $749,611.40 during trading hours. With this surge, the company's valuation has soared to $1.07 trillion, pushing it past Tesla to become the eighth highest-valued public company globally.

Over the past year, Berkshire's stock has increased by 21%, outperforming the 18.3% growth recorded by the SPDR S&P 500 ETF Trust, which tracks the S&P 500 index.

Conclusion

As Berkshire Hathaway’s stock continues to climb, analysts remain cautiously optimistic, highlighting both the strengths and potential challenges facing the conglomerate.

Berkshire, Stock, Analyst