Berkshire Hathaway (BRK.B) shares are down by more than 4.5% on Monday after legendary investor Warren Buffett confirmed plans of stepping down as the chief executive of the conglomerate holding company. 

Buffett will exit the top role at Berkshire on Jan. 1 but will still serve as the chairman of the board. 

At the annual meeting over the weekend, the Omaha-headquartered giant named Greg Abel its next chief executive. Abel is currently the vice chairman of noninsurance operations at Berkshire Hathaway. 

Despite today’s decline, Berkshire Hathaway stock is up nearly 20% versus its year-to-date low. 

UBS Sees Upside in Berkshire Hathaway Stock to $606

According to Brian Meredith, a senior UBS analyst, Buffett’s departure was largely anticipated and is, therefore, unlikely to be of particular significance for Berkshire Hathaway’s share price in 2025. 

Meredith reiterated his “Buy” rating on Class B shares this morning and left his price target unchanged at $606, which indicates potential upside of more than 16% from current levels. 

UBS does not expect a meaningful change in Berkshire’s overall culture, strategy, or operations under Greg Abel as its chief executive. 

The conglomerate has been relentless in diversifying its portfolio to generate robust cash flows, which has trimmed its reliance on Buffett’s investment acumen, Meredith added in his research note.

Investors Should Welcome Berkshire’s New Chief Executive

Warren Buffett will continue as the chairman of Berkshire, which indicates he’ll remain a mentor for Greg Abel and the rest of the conglomerate’s leaders moving forward. 

Knowing that the legendary investor is not leaving Berkshire Hathaway for good should prove sufficient for investors to “welcome this transparent transition,” said Macrae Sykes, a portfolio manager at Gabelli Funds on Monday. 

Experts are sticking to their bullish views on Berkshire Hathaway stock even though the giant reported a 14% decline in quarterly operating earnings to $9.64 billion over the weekend. 

Berkshire also acknowledged in its earnings release that higher tariffs under President Donald Trump are fueling uncertainty in 2025.  

What’s the Mean Target on Berkshire Hathaway in 2025?

Berkshire Hathaway remains a “Buy”-stock among Wall Street analysts this year. 

However, not all of them are as bullish as UBS, given the mean target on Buffett’s conglomerate currently sits at about $533, which indicates potential upside of only a tad above 3% from here.