Berkshire downgraded to Underperform from Market Perform at Keefe Bruyette

Keefe Bruyette downgraded Berkshire Hathaway (BRK.B) (BRK.A) to Underperform from Market Perform with a price target of $7,000, down from $735,000. The firm believes the peaking of Geico’s underwriting margin, declining property catastrophe reinsurance rates, lower short-term interest rates, the tariff-related pressure on the rails, and the risk of fading alternative energy tax credits will drive the stock to underperform over the next 12 months. “Many things are moving in the wrong direction” for Berkshire, the analyst tells investors in a research note.