Barclays Upgrades Berkshire Hathaway (BRK-A) to Overweight; Generate Strong Earnings Growth

August 9, 2011 1:30 PM EDT
Get Alerts BRK-A Hot Sheet
Price: $242,500.05 --0%

Rating Summary:
    3 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Barclays upgraded Berkshire Hathaway (NYSE: BRK-A) from Equalweight to Overweight with a price target of $127,500.00.

Barclays analyst said, "Berkshire Hathaway, which has $48bn in cash, should generate strong earnings growth from the Burlington Northern railroad and the Manufacturing, Service, & Retail units while Insurance and Utilities earnings could be stable and investment results could be volatile. Overall, earnings growth could slow after 2012 barring another large acquisition and the company has high gearing to a economic conditions and equity markets. Also, CEO succession risk remains elevated in our view due to a lack of clarity in Warren Buffett's succession plan. Despite these concerns, Berkshire's shares appear attractively valued at 1.01x book value- the lowest level since March 2009."

For more ratings news on Berkshire Hathaway click here and for the rating history of Berkshire Hathaway click here.

Shares of Berkshire Hathaway closed at $107300.00 yesterday.

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