Berkshire Hathaway-B (BRK.B) reported its third quarter 2011 operating earnings of $1.54 per share up 36% year-over-year, led by higher operating income across all the business segments except Finance & Financial Products. Insurance, Railroad, Utilities and Energy, Manufacturing, Service and Retailing have performed well.
Berkshire's property and casualty insurance business has been the engine behind its growth. The company's insurance business (which accounted for approximately 40% of its 2010 operating income) maintains capital strength at exceptionally high levels.
Our six-month target price of $91.00 per share equates to about 13.2X our earnings estimate for 2011. This target price implies an expected total return of 17.0% over that period. This is consistent with our Outperform recommendation on the stock.
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report
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