BMO Capital raises Celestica stock price target to $300 on OpenAI partnership

Investing.com - BMO Capital has raised its price target on Celestica (NYSE:CLS) to $300.00 from $230.00 while maintaining an Outperform rating ahead of the company’s third-quarter 2025 results, due October 27. The stock has delivered an impressive 313% return over the past year, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.

The price target increase follows OpenAI’s announcement of a strategic partnership with Broadcom (NASDAQ:AVGO), which BMO Capital believes will benefit Celestica significantly.

BMO Capital indicates that Celestica is "likely to be a key beneficiary of OpenAI’s AVGO-based spend," suggesting potential revenue growth for the company from this partnership.

The research firm believes this potential benefit is not adequately reflected in current consensus estimates, particularly for fiscal year 2027, which BMO now focuses on for valuation purposes.

BMO Capital justifies the premium multiple for Celestica stock based on the company’s customer exposure, market position, and the potential for further upside to the firm’s estimates.

In other recent news, Celestica reported impressive financial results for the second quarter of 2025, with sales reaching $2.89 billion, marking a 9% sequential increase and a 21% year-over-year growth. Following these results, Stifel raised its price target for Celestica to $230, maintaining a Buy rating, while RBC Capital increased its target to $225, citing strong demand from hyperscalers. Aletheia Capital also initiated coverage on Celestica with a Buy rating and a $350 price target, highlighting its role as a key manufacturing partner for Google’s TPU modules and future plans with OpenAI.

Additionally, Celestica introduced two new 1.6TbE data center switches, the DS6000 and DS6001, designed for high-bandwidth AI and machine learning applications. These switches, based on Broadcom’s Tomahawk 6 chipset, double the capacity of the company’s existing solutions. In corporate governance, Celestica expanded its Board of Directors by appointing Chris Colpitts, who brings two decades of experience in technology, media, and telecommunications sectors. These developments reflect the company’s strategic moves and its positioning in the rapidly evolving tech landscape.

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