Celestica (NYSE:CLS) Price Target Raised to $453.00

Key Points

• UBS raised Celestica’s price target to $453 from $430 and maintained a “buy” rating, implying approximately 50.8% upside. The stock has an overall “Buy” consensus rating with an average target of $448.83.
• Celestica reported strong quarterly results, with revenue of $5.74 billion and adjusted EPS of $3.30, surpassing analyst estimates of $5.39 billion and $3.02, respectively. Growth was driven by demand for AI-related networking and computing infrastructure.
• While analysts remain optimistic about Celestica’s AI-driven growth outlook, cash-flow concerns persist, including expected negative free cash flow in 2027 amid heavy working-capital investment; company insiders also sold approximately $89.2 million of shares in the latest quarter.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS had its price objective increased by analysts at UBS Group from $430.00 to $453.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm presently has a "buy" rating on the technology company's stock. UBS Group's target price indicates a potential upside of 50.84% from the company's current price.

CLS has been the subject of several other reports. Canadian Imperial Bank of Commerce raised their price objective on shares of Celestica from $480.00 to $500.00 and gave the stock an "outperform" rating in a report on Wednesday, July 29th. Citigroup upped their target price on shares of Celestica from $415.00 to $436.00 and gave the company a "buy" rating in a research note on Wednesday. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Celestica in a research report on Thursday, October 15th. FBN Securities assumed coverage on Celestica in a research note on Tuesday, September 15th. They issued an "outperform" rating and a $375.00 price target for the company. Finally, Stifel Nicolaus set a $500.00 price objective on Celestica in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $448.83.

Celestica Stock Up 8.6%

Shares of Celestica stock traded up $23.78 on Wednesday, hitting $300.32. 5,942,283 shares of the company's stock traded hands, compared to its average volume of 2,470,671. The stock has a market cap of $34.53 billion, a P/E ratio of 28.41 and a beta of 2.01. The company has a quick ratio of 0.68, a current ratio of 1.23 and a debt-to-equity ratio of 0.32. The firm's 50-day moving average is $325.96 and its 200 day moving average is $331.57. Celestica has a 52-week low of $244.51 and a 52-week high of $474.02.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its quarterly earnings results on Monday, October 26th. The technology company reported $3.30 earnings per share for the quarter, topping analysts' consensus estimates of $3.02 by $0.28. The business had revenue of $5.74 billion during the quarter, compared to the consensus estimate of $5.39 billion. Celestica had a net margin of 7.16% and a return on equity of 39.96%. Equities analysts anticipate that Celestica will post 10.71 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Robert Mionis sold 23,396 shares of the stock in a transaction that occurred on Wednesday, September 23rd. The stock was sold at an average price of $364.22, for a total value of $8,521,291.12. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, President Todd C. Cooper sold 20,118 shares of the firm's stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $360.00, for a total value of $7,242,480.00. Following the completion of the sale, the president owned 73,252 shares in the company, valued at approximately $26,370,720. This represents a 21.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 243,067 shares of company stock valued at $89,200,967 in the last quarter. Company insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Cibc World Market Inc. acquired a new position in shares of Celestica during the second quarter valued at $757,811,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Celestica in the second quarter worth about $674,199,000. Bank of America Corp DE acquired a new stake in Celestica in the second quarter worth about $444,899,000. The Manufacturers Life Insurance Company bought a new position in Celestica in the 2nd quarter valued at about $351,717,000. Finally, Legal & General Group Plc bought a new position in Celestica in the 2nd quarter valued at about $333,588,000. Institutional investors and hedge funds own 67.38% of the company's stock.

Key Celestica News

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Strong Q3 results: Revenue rose approximately 83% year over year to about $5.7 billion, while adjusted EPS reached $3.30, exceeding the $3.02 analyst consensus. The company’s results were driven by demand for AI-related networking and computing infrastructure. Celestica Q3 Earnings Beat Estimates on Strong CCS Demand
• Positive Sentiment: Higher growth outlook: Management raised its 2026 outlook and now expects 2027 revenue to approach $40 billion—nearly double the current level—with approximately $21.50 in non-GAAP EPS. The forecast reflects an AI infrastructure “supercycle,” expanding networking demand and growth in proprietary ASICs. Celestica sees 2027 sales nearly doubling to $40 billion
• Positive Sentiment: Improved sentiment and trading activity: Several analysts and growth-focused publications characterized CLS as attractively valued relative to its earnings growth, while a new buy rating and unusually heavy call-option activity added to bullish momentum. New Buy Rating for Celestica
• Neutral Sentiment: The stock had recently sold off sharply before earnings, so part of the move appears to reflect an earnings rebound and renewed interest in AI exposure rather than only fresh fundamental news.
• Negative Sentiment: Cash-flow concerns remain: Analysts noted that Celestica expects negative free cash flow in 2027 because of heavy working-capital investment. Deteriorating cash conversion, receivables sales and rising inventory could limit the benefit of the impressive earnings and revenue forecasts. Celestica: Free Cash Flow Tells The Whole Story

About Celestica

Celestica Inc is a global provider of design, manufacturing, and supply chain solutions for original equipment manufacturers and other technology companies. The company helps customers develop, produce, and support complex hardware and integrated systems across their product life cycles.

Its services include product design and engineering, electronics and mechanical manufacturing, systems integration, testing, supply chain management, logistics, and after-market support. Celestica serves markets such as communications, enterprise and cloud computing, aerospace and defense, industrial technology, health technology, and capital equipment.

Headquartered in Toronto, Canada, Celestica operates a global network of manufacturing, engineering, and supply chain facilities serving customers in North America, Europe, and Asia.

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