Downer (ASX:DOW) share price may only be at start of a capital return cycle

The Downer EDI Limited (ASX: DOW) share price surged to a more than one-year high after announcing a massive share buyback.

This may only mark the start of a multi-year capital return program, according to Morgan Stanley.

The Downer share price jumped 7.3% to $5.71 on Wednesday – making it the top performer on the S&P/ASX 200 Index (Index:^AXJO).

The Kogan.com Ltd (ASX: KGN) share price is in second spot with a 7.1% increase and Cleanaway Waste Management Ltd (ASX: CWY) share price is in third with a 5% gain.

Big capital return boosts the Downer share price

Coming back to Downer, shares in the engineering contractor soared after it said it would undertake an on-market share buyback of up to 70.1 million shares. That’s around…