Barclays Maintains an 'Overweight' on Berkshire Hathaway (BRK-A);Takeaways From Annual Meeting

May 7, 2012 1:42 PM EDT
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Barclays maintains an 'Overweight' on Berkshire Hathaway (NYSE: BRK-A) price target of $142,500.00.

Analyst, Jay Gelb, said, "We see the most important takeaways from the Berkshire Hathaway annual meeting as: 1) Berkshire is pursuing acquisitions for up to around $20bn in cash; potential deal size could grow to $30bn by YE12 as its cash position grows...2) Berkshire could repurchase tens of billions of dollars of its stock if the valuation falls below 1.1x BV; 3) Buffett emphasized Berkshire's attractive valuation-GEICO is worth about $15bn and Burlington Northern is likely worth billions of dollars more since it was acquired for $26bn in 2010...4) Berkshire's reinsurance operations have significant capacity of policy limits up to $10bn for property catastrophe reinsurance coverage."

On Class A shares, Barclays lowers FY12 EPS estimate from $8242.88 to $7651.34 and FY13 from $8856.10 to $8557.29. On Class B, FY12 is cut from $5.50 to $5.10 and FY13 from $5.90 to $5.70.

For an analyst ratings summary and ratings history on Berkshire Hathaway click here. For more ratings news on Berkshire Hathaway click here.

Shares of Berkshire Hathaway closed at $121950.00 yesterday.

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