Stifel raises Celestica stock price target to $230 from $150 on AI demand

Published 29/07/2025, 19:46
Stifel raises Celestica stock price target to $230 from $150 on AI demand

Investing.com - Stifel has raised its price target on Celestica (NYSE:CLS) to $230.00 from $150.00 while maintaining a Buy rating following the company’s second-quarter results. The stock has delivered an impressive 246.74% return over the past year, with InvestingPro data showing an 87.83% gain year-to-date.

Celestica reported better-than-expected financial results for the second quarter of 2025, with sales reaching $2.89 billion, representing a 9% sequential increase and 21% year-over-year growth. The company, now valued at $23.42 billion, maintains a GREAT financial health score according to InvestingPro analysis, though it currently trades at a relatively high P/E ratio of 56.4.

The company’s Communications and Cloud Solutions (CCS) segment grew 28% year-over-year, while the Advanced Technology Solutions (ATS) segment increased by 7%, with both segments exceeding management’s previous expectations.

Management highlighted strong demand for High Performance Solutions (HPS) networking switches and expects this strength to continue as customers transition toward 800G solutions in the second half of fiscal 2025.

Stifel cited Celestica’s strong execution amid accelerating AI-driven demand as the key reason for the price target increase, noting potential long-term upside from early-stage 1.6T programs and digital cloud native opportunities.

In other recent news, Celestica Inc . reported impressive financial results for the second quarter of 2025, significantly exceeding analysts’ expectations. The company announced an adjusted earnings per share (EPS) of $1.39, surpassing the forecasted $1.23, which represents a 13.01% surprise. Revenue also outperformed projections, reaching $2.89 billion compared to the anticipated $2.67 billion, marking an 8.24% increase. In light of these strong results, Celestica has raised its full-year guidance, now projecting revenue of $11.55 billion and an adjusted EPS of $5.50. These developments highlight Celestica’s robust performance and positive outlook for the remainder of the year.

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