We believe Berkshire Hathaway (BRK.B) is poised to grow its top line as the growing rail demand for freight catches up with the stabilizing economy. Also, higher revenues are expected from its Utilities & Energy and Manufacturing, Service & Retail businesses as consumers increase spending.
Also, a solid balance sheet, adequate liquidity and continuing trend of growing book value were among the positives. However, near-term risks related to its exposure to derivative contracts and lack of clarity on a successor to Warren Buffet remain concerns.
Our six-month target price of $100.00 per share equates to about 21.1X our earnings estimate for 2010. This target price implies an expected total return of 19.8% over that period. This is consistent with our Outperform recommendation on the shares.
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report
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