Netherlands-based electronics firm Philips said it had plans of returning EUR 1.5 billion or USD 2 billion back to its shareholders. The announcement came as the company said it would be increasing its financial targets. Analysts from Morgan Stanley told Reuters that Philips had been hoping for share buyback in the vicinity of EUR 2 billion.

Philips said on Tuesday that for 2014 to 2016, it was targeting earnings before interest, tax and amortization or EBITA of 11% to 12%. This year, the EBITA was pegged at 10% to 12%. Meanwhile, it was also shooting for a 14% return on its invested capital. This year, it only targeted 12% to 14%. In a research note, however, Morgan Stanley analysts said the new targets were on the conservative end.

Philips Chief Executive Frans van Houten was optimistic about the firm's growth. "We see substantial opportunities for profitable growth for 2016 and beyond," he said. The group, however, also warned that conditions were tough in some of its markets.