{"id":376162,"date":"2010-03-01T13:31:00","date_gmt":"2010-03-01T18:31:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-7729156960057053528"},"modified":"2010-03-01T13:35:59","modified_gmt":"2010-03-01T18:35:59","slug":"marketwatch-berkshire-hathaway-downgraded-after-quarterly-results","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/376162","title":{"rendered":"MARKETWATCH: Berkshire Hathaway downgraded after quarterly results"},"content":{"rendered":"

By Alistair Barr<\/a>, MarketWatch <\/p>\n

SAN FRANCISCO (MarketWatch) — Analysts at Keefe Bruyette & Woods downgraded Berkshire Hathaway Inc. on Monday, saying a recent rally has left shares of the company headed by Warren Buffett close to what they perceive as fair value. <\/p>\n

Cliff Gallant and Brett Shirreffs, insurance analysts at KBW, cut their rating on Berkshire to market perform from outperform. <\/p>\n

They also cut their price target on Berkshire’s Class A shares <\/span> (BRK.A<\/a><\/span> 120,451<\/span><\/b>, +651.00<\/span>, +0.54%<\/span>) <\/span> to $125,000 from $135,000 and lowered 2010 and 2011 earnings estimates to reflect a lackluster economy and a “weak” outlook for the property and casualty insurance industry. <\/p>\n

<\/object> <\/p>\n

News Hub: Does Buffett Have His Swagger Back?<\/h3>\n

Following the publication of Warren Buffett’s investor newsletter <\/a>over the weekend, the New Hub panelists argue whether it still makes sense to invest like Buffett. <\/p>\n<\/p><\/div>\n

Berkshire’s Class B stock <\/span> (BRK.B<\/a><\/span> 80.28<\/span><\/b>, +0.15<\/span>, +0.19%<\/span>) <\/span> was placed in the Standard & Poor’s 500 <\/span> (SPX<\/a><\/span> 1,114<\/span><\/b>, +9.32<\/span>, +0.84%<\/span>) <\/span> index earlier this year, sparking buying among a lot of mutual funds that track the equity benchmark that pushed up the share price. <\/p>\n

Before Monday, the Class A shares had jumped 21% in 2010, while the Class B gained 22%. The S&P 500 slipped 1% over the same period. <\/p>\n

The shares “are nearing an appropriate valuation,” Gallant and Shirreffs wrote in a note to investors. <\/p>\n

At a price of $125,000, Berkshire’s Class A trades at a multiple of about 1.4 to 1.5 times book value that the analysts called “a premium valuation which reflects our view of the strength of Berkshire’s franchises.” <\/p>\n

The Class A shares slipped 0.2% to $119,583 during afternoon trading, while the Class B shares dipped 0.5% to $79.72. The latter recently split on a 50-for-1 basis, a transaction precipitated by Berkshire’s deal to acquire the Burlington Northern Santa Fe railroad system. See story on January 2010 announcement by Berkshire of $44 billion deal to acquire BNSF.<\/a> <\/p>\n<\/p>\n

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\"\" Reuters<\/span> <\/div>\n

Billionaire investor Warren Buffett, the long-time chairman of Berkshire Hathaway.<\/span><\/div>\n

Berkshire reported a 61% jump in 2009 net income on Saturday. <\/p>\n

In his annual letter to shareholders, Buffett said the company’s construction and manufacturing businesses remained under pressure. He also said growth at Geico, Berkshire’s big auto insurer, could slow after several years of expansion. <\/p>\n

However, Buffett also said he believes problems in the U.S. housing market should mostly pass “within a year or so.” Read about Buffett’s letter<\/a> <\/p>\n

<\/span><\/span> BRK.A<\/a> 120,451<\/span><\/b>, +651.00<\/span>, +0.54%<\/span> <\/span><\/span>0