Bank of America Forecasts Strong Price Appreciation for Celestica (NYSE:CLS) Stock

Key Points

• Bank of America raised its price target on Celestica to $430 (from $400) and maintained a "buy" rating, implying about a 9.16% upside from the prior close.
• Analyst consensus is a Moderate Buy with an average target of $370.78 (16 Buy, 4 Hold, 1 Strong Buy), while several firms have issued upgrades or higher targets in recent reports.
• Company insiders have been net sellers recently — the president sold 100,000 shares (~$30.9M) and insiders sold ~297,923 shares (~$88M) last quarter — even as the stock traded around $393.92 with a market cap of about $45.3B and a PE of 54.9.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS had its target price lifted by stock analysts at Bank of America from $400.00 to $430.00 in a report issued on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the technology company's stock. Bank of America's target price would indicate a potential upside of 9.16% from the company's previous close.

A number of other research firms have also commented on CLS. Wolfe Research raised Celestica to a "strong-buy" rating in a report on Tuesday, February 17th. TD Cowen raised their price target on Celestica from $330.00 to $350.00 and gave the stock a "hold" rating in a report on Monday. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Celestica in a report on Wednesday, January 21st. BMO Capital Markets reissued an "outperform" rating on shares of Celestica in a research note on Monday, January 26th. Finally, Susquehanna initiated coverage on Celestica in a research note on Wednesday, April 1st. They set a "positive" rating and a $375.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $370.78.

Celestica Stock Performance

Shares of Celestica stock traded down $2.10 during trading hours on Monday, reaching $393.92. The company had a trading volume of 591,481 shares, compared to its average volume of 2,472,954. Celestica has a one year low of $78.84 and a one year high of $404.95. The business has a fifty day simple moving average of $294.75 and a 200 day simple moving average of $300.34. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.44 and a quick ratio of 0.88. The firm has a market cap of $45.29 billion, a PE ratio of 54.94 and a beta of 1.88.

Insider Activity at Celestica

In related news, President Jason Phillips sold 100,000 shares of Celestica stock in a transaction on Friday, February 6th. The stock was sold at an average price of $308.92, for a total transaction of $30,892,000.00. Following the completion of the sale, the president owned 12,584 shares of the company's stock, valued at approximately $3,887,449.28. This trade represents a 88.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, President Todd C. Cooper sold 1,065 shares of Celestica stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $283.51, for a total value of $301,938.15. Following the sale, the president directly owned 108,970 shares of the company's stock, valued at $30,894,084.70. This represents a 0.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 297,923 shares of company stock valued at $88,027,459. Company insiders own 0.52% of the company's stock.

Institutional Investors Weigh In On Celestica

Several large investors have recently added to or reduced their stakes in the business. Assenagon Asset Management S.A. raised its position in Celestica by 3.6% during the first quarter. Assenagon Asset Management S.A. now owns 4,574 shares of the technology company's stock valued at $1,286,000 after purchasing an additional 161 shares in the last quarter. Sovereign Financial Group Inc. raised its position in Celestica by 19.4% during the first quarter. Sovereign Financial Group Inc. now owns 832 shares of the technology company's stock valued at $234,000 after purchasing an additional 135 shares in the last quarter. Athena Wealth Management LLC purchased a new stake in Celestica during the first quarter valued at about $273,000. XML Financial LLC raised its position in Celestica by 4.0% during the first quarter. XML Financial LLC now owns 2,600 shares of the technology company's stock valued at $732,000 after purchasing an additional 100 shares in the last quarter. Finally, Brookstone Capital Management raised its position in Celestica by 375.0% during the first quarter. Brookstone Capital Management now owns 14,145 shares of the technology company's stock valued at $3,984,000 after purchasing an additional 11,167 shares in the last quarter. Institutional investors own 67.38% of the company's stock.

About Celestica

Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company's service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.

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