Will This Price Target Increase Help Berkshire Hathaway (BRK-B) Stock Today? (Update)

Update (9:44 a.m.): Updated with Monday market open information.

NEW YORK (TheStreet) -- Barclays increased its price target on Berkshire Hathaway  (BRK.B) to $149 and set an "overweight" rating. Significant leverage to improving economy drove the firm's decision.

The stock spiked just after the market opened on Monday to an all-time high of $128.24.

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Separately, TheStreet Ratings team rates BERKSHIRE HATHAWAY as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate BERKSHIRE HATHAWAY (BRK.B) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BRK.B's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • BERKSHIRE HATHAWAY has improved earnings per share by 9.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BERKSHIRE HATHAWAY increased its bottom line by earning $7.89 versus $5.98 in the prior year. This year, the market expects an improvement in earnings ($9870.23 versus $7.89).
  • Net operating cash flow has increased to $6,967.00 million or 45.44% when compared to the same quarter last year. In addition, BERKSHIRE HATHAWAY has also modestly surpassed the industry average cash flow growth rate of 45.43%.
  • You can view the full analysis from the report here: BRK.B Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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