KBW raised its price target for Berkshire Hathaway Inc.'s Class A shares (BRK.A) to $735,000 from $695,000, citing strong second-quarter results and a decisive shift in capital allocation under CEO Greg Abel.
Berkshire reported a 16 percent rise in quarterly operating profit to $12.98 billion, topping analyst forecasts and signaling strength across several key business segments.
Abel, in his second quarter at the helm, put capital to work at a pace Buffett rarely matched in his final years. Berkshire repurchased $4.5 billion of its own shares in the second quarter, up sharply from $235 million in the first quarter, and deployed $32 billion from its cash pile into investments—including becoming a net buyer of Alphabet and completing a $6.8 billion deal.
That activity stands in contrast to Buffett's later tenure, when Berkshire accumulated close to $400 billion in cash. Abel is spending it.
Higher operating profit was driven by energy, railroad and manufacturing businesses, which offset weaker insurance results during the quarter.
Berkshire's second-quarter 2026 earnings, released Aug. 8, showed the company cutting into its cash stockpile. Full-year 2025 revenue was $371.44 billion, essentially flat versus $371.43 billion the prior year, while 2025 earnings fell 24.75 percent to $66.97 billion.
For Class B shares (BRK.B), four analysts carry an average "Buy" rating with a consensus 12-month price target of $525.33, representing a 0.68 percent premium to the latest price.
KBW's target increase on BRK.A reflects confidence that Abel can sustain this deployment pace. The firm points to Berkshire's capacity to generate and allocate capital as the primary driver of future value.
