Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - RBC Capital has raised its price target on Celestica (NYSE:CLS) to $185.00 from $120.00 while maintaining an Outperform rating on the stock. The company has shown remarkable momentum, with shares surging 186.5% over the past year and 76.62% year-to-date.
The firm cited strong hyperscaler growth momentum as the primary reason for the significant price target increase, noting that this growth trend is expected to continue through the second quarter and remainder of 2025.
RBC Capital believes Celestica is likely to report second-quarter results above consensus estimates and may raise its full-year 2025 guidance due to improving demand visibility from hyperscaler customers.
The investment firm has increased its financial estimates for Celestica alongside the price target adjustment, reflecting greater confidence in the company’s near-term performance.
RBC Capital expects Celestica to continue trading at the high end of its historical valuation range, supported by the company’s strong growth momentum in the hyperscaler segment.
In other recent news, Celestica reported first-quarter earnings for 2025 that surpassed analyst expectations, with adjusted earnings per share reaching $1.20, above the projected $1.12. Revenue for the quarter was $2.65 billion, exceeding the forecast of $2.56 billion and marking a 20% year-over-year increase. This growth was driven by a 28% rise in the Communications and Cloud Solutions segment and a 5% increase in the Advanced Technology Solutions segment. Following these results, Celestica’s management has raised its full-year 2026 guidance. Stifel analysts maintained a Buy rating on Celestica, setting a price target of $150, citing the company’s robust financial performance. BMO Capital Markets adjusted its price target for Celestica to $130, maintaining an Outperform rating, influenced by significant contract wins and a strong competitive position. However, BMO had previously lowered the target to $118 due to industry-wide trends but remained positive on the company’s future. Citi recently initiated coverage with a Neutral rating, noting significant gains in the AI back-end switch market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.