Analyst Endorses Buffett and Berkshire Hathaway (BRK.A, BRK.B)

Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) has picked up a new analyst and new coverage. Very few analysts cover the stock due to its share price and its holding company model.  Keefe Bruyette & Woods, also called KBW on the Street, has initiated coverage of the stock with an “Outperform” rating.

The target on the stock is $107,000.00 for the “A” shares.  KBW believes that Warren Buffett and friends have high quality businesses which also have solid long-term growth prospects. The analyst also noted the $25 billion cash stockpile and noted that the derivatives and investment losses have not dented its balance sheet compared to most companies throughout the fallout we have seen.

The research call even noted that it is one of the few financially sound companies after the financial meltdown hurt so many peers and so many others directly and indirectly tied.

On the prospects side, KBW noted that Buffett’s investment opportunities may be better now than they have been in years and years.

Today’s price target leaves almost 25% upside if it gets hit.

Jon C. Ogg
June 29, 2009