The firm initiated coverage on the company's Class A shares with a buy rating and price target of $244,500 per share, indicating an upside of more than 16 percent from Friday's close at $210,530. UBS also sees limited downside risk since Berkshire plans to buy back shares at 1.2 times their book value.
In the last 12 months, the company's Class A shares are down 2.5 percent while the S&P 500 is only down 1.2 percent. UBS explains that the stock's underperformance in 2015 is mostly due to softness in insurance and railroads.
Looking ahead, the firm said that Berkshire has structural advantages that should allow it to "grow earnings and book value faster than the S&P 500."