Zachs Reaffirms Berkshire Hathaway “Outperform” Rating

Zachs recently reaffirmed Berkshire Hathaway’s stock rating as “outperform” in a report that was recently issued on Thursday. The current target price of Berkshire Hathaway Class B shares is $137.

A Zacks analyst wrote, “we are reiterating our outperform recommendation on the shares of Berkshire Hathaway, following a solid second-quarter earnings. Results reflected strong performances across all business segments – insurance, railroads, utilities and energy, manufacturing, service and retailing as well as finance and financial products. Though the company witnessed fluctuating earnings between the quarters due to heavy exposure to stock option derivatives, most of these gains/losses are unrealized. Moreover, we expect its finance and financial products segment to continue to improve, given the gradually recovering economy. A solid balance sheet, adequate liquidity and continuing trend of growing book value are the other positives. However, lack of clarity regarding chairman Buffett’s succession prevails.”

Berkshire Hathaway is a holding company. They own many subsidiaries engaged in a diverse amount of different business activities.