ABB Ltd. (ABB) is planning to launch a new share buyback program of up to $3 billion, beginning April 2022. The plan is expected to run until the company’s annual general meeting in 2023.
ABB manufactures and sells electrification, industrial automation, and robotics and motion products to utilities, industry and transport, and infrastructure customers worldwide. Shares of the company have gained 14.4% over the past year.
The plan has been announced post the completion of a previous share repurchase program. With these buybacks, ABB seeks to return to shareholders cash proceeds from the Power Grids divestment of $7.8 billion.
ABB has repurchased shares worth $6.6 billion under its Power Grids capital return program since July 2020. With the new program, the remaining amount is expected to be returned to the shareholders.
ABB CFO Timo Ihamuotila said, “ABB targets to have a strong and efficient balance sheet. We are pleased to be in a position to announce this new share buyback program, fully aligned with ABB’s consistent capital allocation principles.”
Stock Rating
Recently, Oddo BHF analyst Delphine Brault upgraded ABB’s rating to Hold from Sell.
The stock has a Moderate Buy consensus rating based on two Buys and one Hold. The average ABB price target of $36.49 implies 4.9% upside potential to current levels.
Positive Sentiment
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on ABB, as 12.5% of investors on TipRanks increased their exposure to ABB stock over the past 30 days.
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