Stock Price & Analysis

Based on the provided data and current market conditions, here's my analysis of BRK.A:

Technical Analysis

The stock is currently showing mixed technical signals. The RSI(14) at 52.03 indicates neutral momentum, neither overbought nor oversold. The Fibonacci levels suggest key resistance at $704,276 and support at $666,958.

Recent Performance & Valuation

According to UBS analysis, Berkshire shares are projected to gain nearly 17% in 2025, with analyst Brian Meredith setting a price target that implies significant upside from current levels. The company outperformed the S&P 500 in 2024 with a 25.5% gain.

Business Fundamentals

Key strengths supporting a buy case:

1. Strong Insurance Operations: Geico is expected to pivot to growth in 2025 after several years of shrinking policy count.

2. Substantial Cash Position: Berkshire holds $325 billion in cash and short-term investments, providing significant firepower for acquisitions and opportunities.

3. Diversified Portfolio: The company owns various businesses across insurance, energy, railroads, and manufacturing sectors, providing stability through economic cycles.

Risk Factors

1. Elevated Valuation: Currently trading at a 1% premium to intrinsic value according to UBS estimates, making significant share buybacks unlikely in the near term.

2. Management Succession: While succession plans are in place, Warren Buffett's age (94) remains a consideration for long-term investors.

Conclusion

SELL recommendation at current levels. While Berkshire remains a fundamentally strong company, the current valuation premium and technical indicators suggest limited upside potential in the near term. The stock appears to be fairly valued to slightly overvalued at current levels.

Based on the provided data and context, I'll analyze BRK.A's price prediction for 2025:

Technical Analysis

The technical indicators show BRK.A is currently in a bullish trend with RSI at 52.03, indicating a neutral momentum. The stock is trading above its 5-day SMA (696,162) and 10-day SMA (686,725), suggesting short-term upward momentum.

Fundamental Drivers

1. Growth Catalysts:

• UBS projects a nearly 17% gain for Berkshire shares in 2025
• Geico is expected to pivot to growth after policy count shrinkage
• Strong operating earnings supported by investment income

2. Economic Positioning:

• Well-positioned for both economic growth and downturns
• Cyclical businesses like BNSF Railway benefit from economic expansion
• Insurance businesses provide defensive hedge during market corrections
• Record cash position of $325.2 billion provides acquisition firepower

Price Target Analysis

Based on multiple factors:

1. Analyst Projections:

• UBS target: ~$797,308 (17% upside from current levels)
• Strong operating earnings potential of $45 billion for 2024

2. Technical Levels:

• Fibonacci resistance levels suggest potential upside to $704,276 (R1) and $715,804 (R2)
• Support levels at $666,958 (S1) and $655,430 (S2)

2025 Price Prediction: BRK.A is expected to reach $797,000 by end of 2025, driven by Geico's growth recovery, strong insurance earnings, and potential deployment of its massive cash reserves for value-creating acquisitions.

The S1 support level for BRK.A Stock is $666958.07 ,The R1 resistant level for BRK.A Stock is $704276.83.

As of the end of day on 2025-01-24, the price of BRK.A Stock was $694601.5.

The target price for BRK.A Stock according to analyst rating is 796,021, with the highest price target at 796,021 and the lowest at 796,021. Analysts have a Moderate Buy rating on BRK.A Stock overall.

The market cap of BRK.A is $383.4B.

Based on the provided data and context, I'll analyze whether BRK.A is overvalued in 5 concise sentences:

Berkshire Hathaway's current valuation metrics show moderate levels with a P/E ratio of 9.32 and EV/EBITDA of 11.95 in Q3 2024, indicating reasonable valuation compared to historical averages. The company's massive cash position of $325 billion, earning over 4% interest on Treasury bills, provides significant financial flexibility and downside protection while waiting for attractive investment opportunities. Despite trading near multi-year highs in terms of price-to-book ratio, Berkshire's operating businesses are being valued at just 12.9x earnings when excluding its cash and investment portfolio, representing an attractive valuation for its collection of recession-resistant businesses. The company's diverse portfolio of wholly-owned businesses generating consistent cash flows, combined with its insurance operations that brought in $77.3 billion in revenue through Q3 2024, justifies its current valuation levels. While some traditional valuation metrics may appear elevated, Berkshire's unique business model, strong cash position, and proven track record of long-term value creation suggest the stock is fairly valued rather than overvalued at current levels.

Berkshire Hathaway Inc. and its subsidiaries are engaged in diverse business activities, including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing. The Company’s segments include Insurance; Railroad (BNSF); Berkshire Hathaway Energy (BHE); Pilot Travel Centers (Pilot); Manufacturing; McLane Company (McLane), and Service and retailing. The Insurance segment includes GEICO, Berkshire Hathaway Primary Group and Berkshire Hathaway Reinsurance Group. The BNSF segment includes operation of railroad systems in North America through Burlington Northern Santa Fe, LLC. The BHE segment offers regulated electric and gas utilities. The Manufacturing segment manufacturers various products, including industrial, consumer and building products. The McLane segment is engaged in wholesale distribution of groceries and non-food items. The Pilot segment is an operator of travel centers in North America and a marketer of wholesale fuel.

Based on the provided references and data, here's a comprehensive analysis for BRK.A's price prediction for 2030:

Berkshire Hathaway Class A shares are projected to reach approximately $1.2 million by 2030, driven by strong operational performance and strategic positioning. The prediction is supported by UBS's positive outlook for 2025 with a projected 17% gain, combined with Berkshire's proven track record of maintaining steady growth through economic cycles.

The company's diversified portfolio, substantial cash reserves exceeding $325 billion, and strategic positioning in both defensive sectors (insurance) and growth opportunities make this target achievable through consistent compound growth over the next five years.

The key driver for this growth projection is Berkshire's unique ability to benefit in both strong and weak economic environments through its diverse business mix and substantial cash position for opportunistic acquisitions.

BRK.A has a total of 396500 employees.