Berkshire Gets Rare Sell Rating on Risks in Earnings, Succession

Berkshire Hathaway Inc. got a rare sell rating, with analysts cautious on its earnings outlook and ongoing concerns over Warren Buffett’s upcoming departure and macro risks.

Keefe, Bruyette & Woods cut the recommendation on the conglomerate’s Class A shares to underperform from market perform, saying “many things moving in the wrong direction.” Among six analysts tracked by Bloomberg that cover the firm it is the only sell rating.

“Beyond our ongoing concerns surrounding macro uncertainty and Berkshire’s historically unique succession risk — think the shares will underperform as earnings challenges emerge and/or persist,” analyst Meyer Shields wrote in a ...