More on the UBS upgrade from Barron's:

UBS analyst Brian Meredith Tuesday lifted his price target on the A shares by 3% to $877,848 from $854,596, while maintaining a Buy rating on the stock.

UBS’s Meredith lifted his 2026 and 2027 estimates for the Berkshire B shares by 1.3% and 0.8% to $21.05 and $21.32, respectively, citing “modestly higher earnings at BNSF and lower catastrophe losses” in the second quarter. His price target is about 15% above the current stock price. He pegs Berkshire’s intrinsic value at nearly $800,000 per class A share, about 5% above the current price.

Berkshire’s valuation remains reasonable at about 1.4 times what Barron’s estimates is the current book value of about $535,000 per class A share, up from our projection of about $522,000 at the end of the second quarter.

Meredith said Berkshire’s apparent purchase of about $8.5 billion of stock in the second quarter—a development first reported in Barron’s earlier this month based on an ownership filing by Chairman Warren Buffett—is a “bullish sign.” That would be one of its largest quarterly buybacks ever.

Berkshire’s equity portfolio is having a strong quarterly and year to date performance led by Apple (its largest holding) and Coca-Cola
KO, both of which hit new highs Tuesday. Apple, at nearly $340, is up 25% this year, while Coke is up 6% Tuesday after a strong second-quarter earnings report and now is nearly 29% higher at $89.