Celestica (NYSE:CLS) Shares Down 5.7% After Analyst Downgrade

Key Points

• Celestica's shares fell 5.7% after TD Securities downgraded the stock from a buy to a hold rating, setting a new price target of $238.00.
• Despite the downgrade, other analysts have mixed ratings, with nine ratings as Buy and a consensus rating of "Moderate Buy" with an average target price of $207.38.
• Celestica reported earnings of $1.39 per share for the last quarter, exceeding estimates, with revenue increasing 21.0% year-over-year.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS was down 5.7% during mid-day trading on Friday after TD Securities downgraded the stock from a buy rating to a hold rating. TD Securities now has a $238.00 price target on the stock, up from their previous price target of $130.00. Celestica traded as low as $237.00 and last traded at $236.68. Approximately 664,299 shares traded hands during trading, a decline of 84% from the average daily volume of 4,108,683 shares. The stock had previously closed at $250.91.

CLS has been the topic of several other research reports. Citigroup lifted their price target on shares of Celestica from $172.00 to $212.00 and gave the company a "neutral" rating in a report on Wednesday, July 30th. Canaccord Genuity Group lifted their price objective on shares of Celestica from $126.00 to $240.00 and gave the company a "buy" rating in a research report on Wednesday, July 30th. Wall Street Zen cut shares of Celestica from a "buy" rating to a "hold" rating in a research report on Saturday, September 13th. BNP Paribas reiterated an "outperform" rating and set a $300.00 price objective on shares of Celestica in a research report on Thursday, September 25th. Finally, Barclays lifted their price objective on shares of Celestica from $146.00 to $220.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $207.38.

Hedge Funds Weigh In On Celestica

Large investors have recently added to or reduced their stakes in the company. Rothschild Investment LLC lifted its stake in Celestica by 20.0% during the second quarter. Rothschild Investment LLC now owns 390 shares of the technology company's stock worth $61,000 after purchasing an additional 65 shares during the last quarter. Golden State Wealth Management LLC lifted its stake in Celestica by 102.5% during the second quarter. Golden State Wealth Management LLC now owns 164 shares of the technology company's stock worth $26,000 after purchasing an additional 83 shares during the last quarter. First Horizon Advisors Inc. lifted its stake in Celestica by 33.1% during the second quarter. First Horizon Advisors Inc. now owns 350 shares of the technology company's stock worth $55,000 after purchasing an additional 87 shares during the last quarter. Freedom Investment Management Inc. lifted its stake in Celestica by 1.5% during the first quarter. Freedom Investment Management Inc. now owns 6,360 shares of the technology company's stock worth $501,000 after purchasing an additional 96 shares during the last quarter. Finally, Wolff Wiese Magana LLC increased its position in Celestica by 45.6% during the second quarter. Wolff Wiese Magana LLC now owns 364 shares of the technology company's stock worth $57,000 after buying an additional 114 shares during the period. 67.38% of the stock is currently owned by institutional investors.

Celestica Stock Performance

The firm has a market cap of $27.88 billion, a price-to-earnings ratio of 52.53 and a beta of 1.88. The company has a quick ratio of 0.86, a current ratio of 1.44 and a debt-to-equity ratio of 0.48. The stock has a fifty day moving average price of $217.83 and a 200-day moving average price of $149.99.

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

Celestica Company Profile

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.

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