TD Securities Downgrades Celestica (NYSE:CLS) to Hold

Key Points

• TD Securities has downgraded Celestica from a "buy" rating to a "hold" rating, while raising the target price from $130.00 to $238.00, indicating a potential downside of 5.17% from the current price.
• Celestica's latest quarterly earnings report showed an EPS of $1.39, exceeding expectations, and the company provided future revenue guidance of $4.35 earnings per share for the current year.
• Institutional investors hold a significant portion of Celestica's shares, with 67.38% ownership, and notable transactions include Norges Bank acquiring a new position valued at $236 million in the second quarter.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS was downgraded by TD Securities from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Friday, MarketBeat.com reports. They presently have a $238.00 target price on the technology company's stock, up from their prior target price of $130.00. TD Securities' target price would indicate a potential downside of 5.17% from the company's current price.

Several other analysts have also recently commented on CLS. Canaccord Genuity Group lifted their price target on Celestica from $126.00 to $240.00 and gave the company a "buy" rating in a report on Wednesday, July 30th. Citigroup lifted their price objective on Celestica from $172.00 to $212.00 and gave the company a "neutral" rating in a research note on Wednesday, July 30th. CICC Research started coverage on Celestica in a research note on Tuesday, August 19th. They issued an "outperform" rating on the stock. Wall Street Zen lowered Celestica from a "buy" rating to a "hold" rating in a research note on Saturday, September 13th. Finally, Royal Bank Of Canada lifted their price objective on Celestica from $185.00 to $225.00 and gave the company an "outperform" rating in a research note on Wednesday, July 30th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $194.46.

Celestica Stock Down 0.3%

CLS opened at $250.98 on Friday. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.44 and a quick ratio of 0.86. The stock has a market capitalization of $28.87 billion, a price-to-earnings ratio of 54.33 and a beta of 1.88. The business has a 50-day moving average of $217.83 and a two-hundred day moving average of $149.99. Celestica has a 12 month low of $50.03 and a 12 month high of $261.83.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last posted its quarterly earnings results on Monday, July 28th. The technology company reported $1.39 EPS for the quarter, beating the consensus estimate of $1.23 by $0.16. The company had revenue of $2.89 billion during the quarter, compared to analysts' expectations of $2.65 billion. Celestica had a return on equity of 28.23% and a net margin of 5.11%.The firm's revenue was up 21.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.91 EPS. Celestica has set its Q3 2025 guidance at 1.370-1.530 EPS. FY 2025 guidance at 5.500-5.500 EPS. On average, research analysts expect that Celestica will post 4.35 earnings per share for the current year.

Hedge Funds Weigh In On Celestica

A number of institutional investors and hedge funds have recently bought and sold shares of CLS. Norges Bank acquired a new position in shares of Celestica during the second quarter valued at $236,069,000. Voya Investment Management LLC boosted its position in shares of Celestica by 362.8% in the 1st quarter. Voya Investment Management LLC now owns 1,854,085 shares of the technology company's stock valued at $146,122,000 after purchasing an additional 1,453,473 shares during the period. Alkeon Capital Management LLC acquired a new stake in Celestica during the 1st quarter worth about $96,936,000. SRS Investment Management LLC acquired a new stake in Celestica during the 2nd quarter worth about $135,289,000. Finally, Alliancebernstein L.P. boosted its position in Celestica by 405.5% during the 1st quarter. Alliancebernstein L.P. now owns 731,937 shares of the technology company's stock worth $57,684,000 after acquiring an additional 587,145 shares during the period. Hedge funds and other institutional investors own 67.38% of the company's stock.

About Celestica

Celestica Inc provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services.