RBC Capital lifts Celestica stock target to $140, keeps Outperform

On Friday, RBC Capital Markets increased its price target on Celestica (NYSE:CLS) shares from $115.00 to $140.00 while maintaining an Outperform rating. Currently trading at $131.66, near its 52-week high, InvestingPro analysis suggests the stock is trading above its Fair Value. The adjustment comes after the company reported strong financial results and provided an optimistic forecast, with the stock delivering an impressive 232% return over the past year.

Celestica recently disclosed that it secured two significant new programs, which are expected to drive solid growth through 2026 and 2027. With a market capitalization of $15.3 billion and strong revenue growth of 21.2% in the last twelve months, RBC Capital’s analyst Paul Treiber highlighted the importance of these new wins, stating they not only enhance the company’s growth outlook but also confirm Celestica’s competitive positioning and market share gains.

The analyst emphasized that these program wins are more significant than the company’s fourth-quarter performance and its fiscal year 2025 guidance. According to Treiber, the new contracts support Celestica’s transition towards a higher quality business model, focusing on High Performance Systems (HPS) and Original Design Manufacturing (ODM).

Celestica’s recent financial results surpassed expectations, and the company’s raised guidance indicates a strong trajectory for the future. The analyst’s comments reflect confidence in Celestica’s ability to execute its new programs effectively, which is anticipated to contribute to the company’s sustained growth over the next several years.

By setting the new price target at $140.00, RBC Capital Markets is signaling its belief that Celestica’s stock has the potential to climb higher, reflecting the company’s strategic wins and positive business outlook. InvestingPro subscribers can access 15+ additional investment tips and a comprehensive Pro Research Report that provides deep insights into Celestica’s financial health, which currently rates as GOOD with an overall score of 2.97.

In other recent news, Celestica has been the subject of several significant developments. BMO Capital Markets revised Celestica’s stock target to $140, based on a positive outlook for the company’s AI-related capital expenditures. RBC Capital Markets, Stifel, and UBS also adjusted their price targets for Celestica to $115, $100, and $95 respectively, with varying ratings.

Celestica has seen a board member, Laurette T. Koellner, announce her resignation, prompting a search for a replacement. In terms of financial performance, Celestica’s third quarter of 2024 led to raised stock price targets from BMO Capital Markets and RBC Capital. The company also expanded its senior secured credit agreement to $1.5 billion and launched the DS4100 data center switch.

These recent developments provide a snapshot of Celestica’s current standing and analyst perspectives. It’s crucial to note that this information is based on past articles and does not include any speculative content.

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