Stifel raises Celestica stock price target to $150

On Wednesday, Stifel analysts increased their price target on Celestica (NYSE:CLS) shares to $150 from the previous $140, while retaining a Buy rating. With the stock currently trading at $132.29 and a market cap of $15.74 billion, InvestingPro analysis indicates the stock is currently overvalued based on its proprietary Fair Value model. The firm’s analysts highlighted Celestica’s strong engineering capabilities, with approximately 950 design engineers, as a key factor in the company’s ability to secure new business with both new and existing customers.

Celestica has recently achieved a significant program win with a digital native customer and is actively involved in three 1.6T switching programs. The company is reportedly the first in the market with these offerings. These developments are expected to become substantial revenue contributors for Celestica in the fiscal year 2026 and beyond, building on its impressive 21.17% revenue growth over the last twelve months.

In addition to future prospects, Stifel’s analysts noted Celestica’s solid near-term fundamentals. The company’s 800G switch programs are currently experiencing a successful ramp-up, and the mix of high-performance solutions (HPS) is increasingly contributing to margins. This success is reflected in the stock’s remarkable performance, with a 234.66% return over the past year. InvestingPro subscribers can access 15+ additional exclusive insights about Celestica’s valuation and growth prospects.

The analysts’ positive outlook on Celestica is bolstered by these recent wins and the ongoing growth in the company’s core business areas. With the new price target set at $150 and an overall "GREAT" financial health score from InvestingPro, Stifel reaffirmed its confidence in Celestica’s market position and its potential for continued financial success.

In other recent news, Celestica has been the focus of several analyst upgrades and strategic developments. RBC Capital Markets recently raised its price target for Celestica to $160, maintaining an Outperform rating, following an investor meeting with the company’s CFO. Analysts at RBC Capital highlighted Celestica’s strong momentum in launching new programs and its unique offerings for hyperscaler clients, which they believe could lead to earnings surpassing consensus estimates. Similarly, BMO Capital Markets increased its price target to $140, citing Celestica’s growing capabilities in the artificial intelligence sector and potential for increased capital expenditures in this area.

Additionally, RBC Capital previously adjusted Celestica’s price target to $140 after the company reported strong financial results and secured significant new programs expected to drive growth through 2026 and 2027. These new contracts are seen as pivotal in supporting Celestica’s transition to a higher quality business model. In corporate governance news, Celestica announced the upcoming resignation of Laurette T. Koellner from its Board of Directors, effective January 31, 2025, due to personal reasons. The company has initiated the search for a suitable replacement to maintain the board’s diverse expertise.

These developments reflect a period of strategic growth and market confidence in Celestica’s business trajectory. Analysts are optimistic about the company’s future, with RBC Capital projecting that High Precision Systems/Original Design Manufacturing will account for a growing portion of Celestica’s revenue. Investors are closely monitoring these changes, as Celestica’s positioning in high-potential sectors continues to evolve.

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