Created by Dividend.com
Jun 29, 2009 | 2:56PM
Warren Buffett’s Berkshire Hathaway Inc. (BRK-A) saw its coverage initiated by analysts at
Keefe Bruyette & Woods as an “Outperform.”
Berkshire Hathaway does not garner much analyst coverage because of its high share price. It is literally the most expensive stock in the world, closing on Friday at a whopping $86,210 per share.
Along with its “Outperform” rating, Keefe Bruyette & Woods, or KBW, set a price target of $107,000.00 for Berkshire’s “A” shares. If the stock could hit this target price, it would represent nearly a 25% appreciation from Friday’s close.
KBW cited Berkshire’s high quality businesses and solid long-term growth prospects for the positive rating. The analyst also pointed to the company’s $25 billion in cash, and relatively strong balance sheet. KBW also feels that Berkshire has extremely good opportunities to grow through acquisition, since valuations plummeted significantly after the financial market meltdown last year.
Berkshire Hathaway “A” shares rose $1,590, or +1.84%, in afternoon trading Monday.
The Bottom Line
Shares of BRK-A are off all-time highs of $147,000, hit in early 2008. The stock has near-term technical support in the $75,000 to $77,500 range. If the shares can firm up, we see initial overhead resistance in the $92,000 to $102,000 price zone. We do not currently rate this non-dividend paying stock, but we do follow the company closely.
Berkshire Hathaway Inc. (BRK-A) does not currently pay a dividend.Related Links
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