Berkshire Hathaway’s strong quarterly earnings report was recovered by insurance underwriting, prompting a Wall Street analyst to raise price targets for conglomerate stocks. Warren Buffett’s Juggernaut shares are priced nearly 5% after the company’s earnings report on Saturday. Berkshire’s operating profit — revenue from the company’s wholly owned business — soared 71% in the fourth quarter to $14.5 billion. From full-year term to $3.4 billion, insured profits rose 302%. Auto insurer GEICO has had the biggest positive impact on Berkshire’s insurance performance, with pre-tax underwriting profits more than doubled to $7.8 billion last year. It is worth noting that GEICO has increased its policy in the second half of the year, reversing the downward trend in the past few years, when it has lost market share. “Geico seems to be turning firmly, effective policy (PIF) grows steadily and continues to have attractive underwriting profits,” UBS’s Brian Meredith said in a note. The division said Berkshire’s “strong finale” by 2024 will increase the 12-month target for B-class stocks from the previous $536 to $557. New forecasts account for about 11% of the current level, about $502. Evercore ISI calls GEICO’s fourth quarter “Stellar” citing accelerated advertising spending and its ability to add effective policies. “In 4Q24, strong underwriting once again demonstrates why Procter & Gamble is Berkshire’s core business,” said TD Cowen’s Andrew Kligerman in a note. Todd Combs’s work ‘replaying’ BRK’s “Long-Term Gem” responsible for “Spectacular” improvements in auto insurance companies. Berkshire’s “Attractive Stocks” elsewhere Warnings are that wildfires in Southern California will result in pre-tax losses of its insurance business of about $1.3 billion. UBS Meredith said the losses were heavier than market expectations. KBW raised its support behind Saturday’s reliable report Earnings forecasts, while increasing the price target for its Class A stock from $750,000 to $775,000. The new target shows that the current level is about 3% upside. UBS’s Meredith correctly predicted last year Berkshire will surpass its $1 trillion market cap, and he continues to believe that the stock is expected to benefit from economic growth due to its cyclical business. But if the economy worsens, due to the defensive nature of its huge insurance empire And Berkshire’s unparalleled balance sheet has hundreds of billions of cash, so the stock can act as a hedge. “We continue to think that in an uncertain macro environment, BRK’s stock is an attractive one , while insurance fundamentals are still strong and visibility is good. ” – Michael Bloom of CNBC contributed the report.
Analysts Raise Berkshire Hathaway’s Goals After ‘Stellar’ Geico Turnover | Real Time Headlines
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