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Investing.com – Applied Materials (NASDAQ:AMAT) shares rose nearly 6% Wednesday on the company’s plan to buy back $7.5 billion of stock, on top of the $1.3 billion remaining from its previous repurchase plan.
The buyback, announced Monday, represents 7% of the company’s $106.8 billion market capitalization.
Applied Materials also said its Kokusai Electric share purchase agreement with KKR HKE Investment may fall through on delays in getting regulatory approvals. It told investors that if it fails to get the green light from Chinese authorities by March 26, it will call off the deal and issue KKR a $154 million termination fee.
On Tuesday, Bank of America (NYSE:BAC) raised its price target on Applied Materials to $150, implying a gain of 21% from the current price. The analyst said the company could make EPS of $9 by 2025.
