By Andrea Figueras
Shares in Avolta climbed after the company said it intends to launch a share buyback program of up to 200 million Swiss francs ($219.6 million), in line with its 2027 growth strategy.
The program, aimed at enhancing shareholder value, is expected to start before the end of January and will end on Dec. 31, the Switzerland-based travel retailer said Friday.
Avolta's growth outlook and potential for additional cash returns are encouraging, RBC Capital Markets analysts Manjari Dhar and Richard Chamberlain said in a note. "Cash returns could be on the horizon," the analysts added.
The stock jumped 5.4% on the news to 38.06 euros in European morning trading.
The group intends to efficiently return additional capital to shareholders and the repurchased shares will be cancelled, increasing Avolta's per share metrics, it said.
"We reiterate our committed priorities to invest in the growth of the business," Chief Executive Xavier Rossinyol said, adding that the company expects to return excess cash to shareholders over the medium-term.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
January 17, 2025 03:27 ET (08:27 GMT)
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