Berkshire Hathaway shares gained more than 2% on Tuesday as investors focused on the conglomerate’s strong equity portfolio, a higher price target from UBS, and expectations that the company repurchased billions of dollars worth of its own stock during the second quarter.
Class B (BRK.B) shares rose about 2.88% to $511.5, while the Class A stock advanced 2.76% to 766,438.44.
Despite Tuesday’s gains, Berkshire shares have risen only about 1% so far this year, trailing the S&P 500’s roughly 9% return in 2026.
The company is expected to report its second-quarter results within the next two weeks, with investors closely watching shareholder equity, operating earnings and capital allocation.
UBS raises price target ahead of earnings
UBS analyst Brian Meredith maintained a Buy rating on Berkshire Hathaway and increased his price target on the Class A shares by 3% to $877,848 from $854,596.
The analyst also modestly raised his second-quarter and full-year earnings estimates, while increasing his 2026 and 2027 earnings forecasts for the Class B shares by 1.3% and 0.8% to $21.05 and $21.32, respectively.
Meredith attributed the higher forecasts to “modestly higher earnings at BNSF and lower catastrophe losses” during the second quarter.
His revised price target implies roughly 15% upside from current levels.
Meredith estimates Berkshire’s intrinsic value at nearly $800,000 per Class A share, around 5% above the current trading price.
Berkshire currently trades at about 1.4 times estimated book value, based on Barron’s estimate of approximately $535,000 per Class A share.
That valuation remains toward the lower end of its recent historical range and below the 1.8-times book value multiple reached in May 2025.
Meredith also described Berkshire’s apparent second-quarter share repurchases as a “bullish sign.”
Barron’s previously estimated that Berkshire repurchased between $5 billion and $11 billion of stock during the quarter based on Warren Buffett’s ownership filing, with approximately $8.5 billion appearing to have been spent on buybacks.
Equity portfolio continues to benefit from Apple and Coca-Cola
Investor sentiment has also been supported by Berkshire’s sizable equity portfolio, which has performed strongly during both the second quarter and year to date.
Apple, Berkshire’s largest investment, reached a fresh high on Tuesday and has gained approximately 25% this year. Coca-Cola also climbed to a record high after reporting strong second-quarter earnings and is now up nearly 29% in 2026 following a 6% gain on Tuesday.
According to CNBC’s portfolio tracker, Berkshire’s equity portfolio is valued at nearly $360 billion.
Its Apple holding is worth approximately $77 billion, while its Coca-Cola investment exceeds $35 billion.
The company’s Bank of America stake, valued at more than $30 billion, also reached a 52-week high on Monday and has gained about 10% this year.
Meanwhile, Berkshire has lagged companies operating in similar industries.
Union Pacific shares have risen about 30% this year, while CSX has gained more than 50%. Property and casualty insurers including Chubb and Everest Group have advanced between 15% and 20%.
Taylor Morrison acquisition and technical outlook remain in focus
Beyond its investment portfolio, Berkshire recently completed its $4.1 billion acquisition of Taylor Morrison, expanding its presence in the US homebuilding market and making it the nation’s fourth-largest homebuilder.
The acquisition marks Greg Abel’s first major transaction since succeeding Warren Buffett as CEO and broadens Berkshire’s exposure to the residential housing sector.
From a technical perspective, Berkshire’s Class B shares continue to trade above several key moving averages, including the 20-day, 50-day and 200-day averages.
Berkshire may also continue to attract investors seeking defensive exposure, supported by nearly $400 billion in cash and its diversified business model at a time when technology stocks remain under pressure.
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