UBS has adjusted its price target for Berkshire Hathaway, raising it from $506 to $538 per share. This adjustment is due to the perception that Berkshire Hathaway is currently trading at a slight discount of 1% to its intrinsic value.
The positive outlook for Berkshire Hathaway is attributed to factors such as lower catastrophe losses and improved underwriting results in the reinsurance sector. However, concerns remain regarding the potential impact of Hurricane Milton, which is expected to increase catastrophe losses in the fourth quarter.
Berkshire Hathaway's diverse investment portfolio, which includes holdings in various sectors, has allowed the company to adapt and thrive in fluctuating market conditions. While the company's market capitalization briefly surpassed $1 trillion in late August, it has since dipped below that threshold.
Berkshire Hathaway reported a profit of $22.8 billion for the first half of the year, a 26% increase compared to the previous year. The company's common equity portfolio experienced a 7% growth in the third quarter, driven by increased stakes in major companies. Berkshire Hathaway is expected to initiate $1.9 billion in share buybacks during the quarter, reflecting its commitment to returning value to shareholders.