Berkshire can outperform given uncertain economy, says UBS

During the past three recessions, Berkshire Hathaway shares have outperformed the market and other financials given its diverse business mix, "very strong balance sheet, and substantial liquidity." UBS analyst Brian Meredith tells investors in a research note. Given the uncertain economic outlook in 2023, the firm believes the stock can outperform. The analyst says Berkshire’s reinsurance businesses should be beneficiaries of the "hard" pricing environment. In addition, the shares are trading at more than a 20% discount to its intrinsic value, a level where Berkshire has historically increased its share repurchase activity, contends UBS. The firm sees accretive acquisitions or higher than expected buybacks as potential share buybacks. It keeps a Buy rating on Berkshire Hathaway (BRK.A) with a $542,568 price target.