Berkshire Hathaway (BRKA, BRKB) is trading lower after the company late Friday posted lower-than-expected Q2 results. Fox-Pitt Kelton analysts Matthew Carletti and Lee Feingold responded to the new by downgrading the stock.
Berkshire�s miss came from each of its segments, including insurance, non-insurance and financial products. The insurance miss in particular was driven by foreign exchange factors.
The Fox-Pitt analysts downgraded the stock to In-Line from Outperform on a valuation basis. Berkshire, the analysts noted, is now trading at its historical book-value multiple of about 1.5 times.
�We believe these are fair valuations at a time when the non-insurance segments of the business continue to struggle amidst a tough economic environment and fell short of our projections in the quarter,� the analysts wrote.
Berkshire Class A shares are down $3,550.01, or 3.3%, to $104,549.99.
Barron’s magazine columnist Andrew Bary has a positive take on the stock in his Weekday Trader on Barrons.com today. (Subscription required to access Barrons.com Weekday Trader articles.)
–Avi Salzman
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