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On Monday, Stifel analysts maintained a Buy rating on Celestica (NYSE:CLS) shares, with a price target of $150.00. According to InvestingPro data, the company maintains a "GREAT" Financial Health score, with analyst consensus strongly bullish at 1.62 (where 1 is Strong Buy). The stock has delivered an impressive 104.9% return over the past year. The firm’s decision follows Celestica’s announcement of a robust financial performance, which exceeded its original management expectations. With a market capitalization of $10.1 billion, Celestica reported a 20% year-over-year increase in sales, reaching $2.65 billion. This growth was led by a 28% year-over-year surge in its Communications and Cloud Solutions (CCS) segment, and a 5% year-over-year rise in its Advanced Technology Solutions (ATS) segment. Seven analysts have recently revised their earnings estimates upward for the upcoming period, as noted in InvestingPro’s analysis.
Celestica’s management highlighted the ongoing robust demand within the CCS segment, particularly for High Performance Servers (HPS) networking switches. They also observed signs of renewed growth in the industrial business. Despite changes in tariff policy, management indicated that there have been no significant alterations to customer programs or overall demand.
The company anticipates continued momentum, having secured a win to produce 1.6T switches for a major Original Equipment Manufacturer (OEM)—a first for Celestica. Additionally, Celestica is expanding into the pluggable optical transceiver segment. Based on these developments, the company has provided second-quarter guidance that surpasses consensus expectations and has raised its full-year revenue, adjusted operating margin, and Earnings Per Share (EPS) forecasts.
Stifel’s analysis comes after reviewing the company’s performance and future outlook, supporting their confidence in the stock’s potential. The analysts’ commentary underscores Celestica’s strategic wins and market position, suggesting a positive trajectory for the company’s financial health and stock value. Trading at an attractive PEG ratio of 0.64, the stock shows promising value relative to its growth potential. Discover more insights about Celestica and access comprehensive analysis of 1,400+ stocks with InvestingPro’s detailed research reports.
In other recent news, Celestica reported first-quarter earnings and revenue for 2025 that exceeded analyst expectations. The company posted adjusted earnings per share of $1.20, surpassing the analyst estimate of $1.12, and reported revenue of $2.65 billion, beating the forecast of $2.56 billion and marking a 20% increase year-over-year. Despite these strong results, the company’s shares fell as investors focused on guidance that was only slightly above consensus. Celestica provided second-quarter guidance with adjusted EPS projected between $1.17 and $1.27 and revenue between $2.575 billion and $2.725 billion. The company also raised its full-year 2025 revenue outlook to $10.85 billion, up from the previous $10.7 billion, and adjusted EPS guidance to $5.00 from $4.75. BMO Capital Markets recently adjusted its price target for Celestica to $118 from $140, while maintaining an Outperform rating, citing broader industry trends. The company’s competitive position remains strong, bolstered by new contracts and ongoing capital expenditure by hyperscale companies. Celestica also reported a significant revenue increase in its Connectivity & Cloud Solutions segment, which grew 28% year-over-year to $1.84 billion.
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