US stock futures edge lower after S&P 500 hits record high; PCE data in focus
On Monday, Celestica (TSX:CLS) shares saw an uptick in market valuation following BMO Capital Markets' revised price target, which now stands at $140, a significant jump from the previous target of $72. The firm maintained its Outperform rating for the company. Trading at $121.69, the stock has delivered an impressive 280.4% return over the past year, according to InvestingPro data. Thanos Moschopoulos, an analyst at BMO, offered insights into the decision, highlighting the company's timely market positioning and growing capabilities in the artificial intelligence (AI) sector.
Moschopoulos's optimism is rooted in the company's potential for increased capital expenditures (capex) related to AI. The analyst's confidence has grown not only for the immediate future but also for the long-term prospects of Celestica. This confidence has led to raised estimates for the company's performance. With an overall financial health score of "GREAT" on InvestingPro, the company maintains a moderate debt level and healthy current ratio of 1.47.
Celestica's recent successes in gaining market share have further contributed to the positive outlook. The analyst believes that the stock remains an attractive option for investors and supports the recent expansion of the company's valuation multiples. The reasoning behind this support is Celestica's exposure to AI and its strong positioning within the market.
Additionally, there is an anticipation of potential upsides to the estimates previously set for Celestica. The company's involvement in AI and its market position are seen as key factors that justify the higher price target and the maintained Outperform rating.
Investors and market watchers are now looking ahead to Celestica's fourth-quarter results for the fiscal year 2024, scheduled for January 29, which are expected to provide further evidence of the company's growth trajectory and its ability to capitalize on the expanding AI market. InvestingPro subscribers can access 15+ additional investment tips and a comprehensive Pro Research Report for deeper insights into Celestica's market position and growth potential.
In other recent news, Celestica Inc (NYSE:CLS). has seen notable changes and predictions from various analysts. The company announced the resignation of Laurette T. Koellner, a member of its Board of Directors, effective January 31, 2025, prompting a search for a suitable replacement. Analysts from RBC Capital Markets increased their price target on Celestica's stock to $115.00, maintaining an Outperform rating, while Stifel raised its price target to $100, retaining a Buy rating. UBS initiated coverage on Celestica with a Neutral rating and set a price target of $95.00, citing strong investments in AI and a rebound in Advanced Technology Solutions.
In addition to these developments, Celestica's third quarter performance in 2024 led BMO Capital Markets and RBC Capital to raise their stock price targets. The company also expanded its senior secured credit agreement to $1.5 billion and launched the DS4100 data center switch. According to recent filings with the U.S. Securities and Exchange Commission, Celestica is committed to transparency and adherence to reporting obligations. These are the latest developments in Celestica's operations and financial performance.
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