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Investing.com - RBC Capital has raised its price target on Celestica (NYSE:CLS) to $315.00 from $225.00 while maintaining an Outperform rating on the stock. The company, currently valued at $30.5 billion, has demonstrated remarkable performance with a 234% gain over the past six months and nearly 400% return over the last year.
The firm increased its financial estimates ahead of Celestica’s upcoming investor day next week, citing continued strong AI capital expenditure growth and new program win momentum for the company. According to InvestingPro data, the company maintains a "GREAT" financial health score and has achieved impressive revenue growth of 20.5% in the last twelve months.
RBC Capital expects Celestica to experience strong revenue growth and margin expansion through fiscal years 2026 and 2027.
The investment bank anticipates Celestica’s valuation will remain above its peers and toward the high end of its historical range due to the robust growth outlook.
Celestica is a provider of electronics manufacturing services, with growing exposure to the artificial intelligence sector through its hardware components and systems.
In other recent news, Celestica has been the focus of multiple analyst reports and product announcements. RBC Capital raised its price target for Celestica to $225 from $185, maintaining an Outperform rating. This adjustment follows Celestica’s strong second-quarter results, which were attributed to high demand from hyperscalers. Meanwhile, BMO Capital also increased its price target to $300, citing potential benefits from OpenAI’s strategic partnership with Broadcom. Goldman Sachs initiated coverage on Celestica with a Buy rating and set a price target of $340, highlighting the company’s advantage in AI data center deployments. Aletheia Capital similarly initiated coverage with a Buy rating and a $350 price target, noting Celestica’s role in manufacturing Google’s TPU modules and future plans with OpenAI. Additionally, Celestica unveiled two new 1.6TbE data center switches designed for AI applications, boasting significant improvements in switching capacity.
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