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Berkshire Hathaway shares are cheap after a pullback from record high, CFRA says

Chaim Potok by Chaim Potok
November 2, 2023
in Investing
Berkshire Hathaway shares are cheap after a pullback from record high, CFRA says
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Berkshire Hathaway ‘s shares are trading at a significant discount, offering investors a buying opportunity ahead of the conglomerate’s earnings report, according CFRA. Catherine Seifert, CFRA’s Berkshire analyst, noted that Berkshire’s Class B shares trade at 17 times her 2025 operating EPS estimate of $19.95 and at 18 times her 2024 EPS estimate of $18.85, marking a 20% discount to the three-year average forward multiple of 22.6 times. The current trading level is “offering investors an attractive entry point to acquire the shares,” Seifert said in a note. BRK.B YTD mountain Berkshire Hathaway The Omaha-based conglomerate’s class A shares have rallied 11.7% this year. After reaching an all-time high on Sept. 19, shares have fallen about 7.6% from the peak as the broader market fell into a correction. Warren Buffett ‘s Berkshire is set to report its third-quarter earnings Saturday morning. Seifert said investors will focus on changes to Berkshire’s equity portfolio as well as its buyback update. “CFRA believes Berkshire’s diversified revenue and earnings mix is positive for the shares, and following a recent pullback, we view BRK.B undervalued versus historical averages,” CFRA said.

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