
Celestica (CLS) Stock Forecast & Price Target
Celestica (CLS) Analyst Ratings
Bulls say
Celestica Inc. has demonstrated significant growth momentum in its hyperscaler business, which rose 66% year-over-year to $4.8 billion, now accounting for 50% of total revenue in fiscal year 2024. The company anticipates continued revenue expansion, with estimates increasing to $11.6 billion for FY25, $13.3 billion for FY26, and $15.8 billion for FY27, driven by robust demand, particularly for networking switches, which saw an 82% year-over-year increase in second-quarter revenue to $1.2 billion. Additionally, Celestica's adjusted EBIT margin is projected to improve to 8.0% by FY27, supported by a favorable outlook for earnings per share, which is expected to rise 26% year-over-year to $7.15.
Bears say
Celestica Inc. has exhibited declining revenue trends, particularly within its Connectivity & Cloud Solutions (CCS) Enterprise segment, which saw a 37% year-over-year decrease in revenue, raising concerns about its profitability and growth trajectory. Although there is a slight sequential improvement, guidance indicates that overall revenue from CCS will remain flat in the fourth quarter, with expectations of only modest recovery in fiscal year 2025, compounded by challenges in their Advanced Technology Solutions (ATS) segment due to strategic portfolio adjustments. Furthermore, the decision not to renew a margin-dilutive aerospace program in the ATS segment is anticipated to hinder year-over-year growth, positioning the company for potential stagnation despite some positive underlying demand signals.
This aggregate rating is based on analysts' research of Celestica and is not a guaranteed prediction by Public.com or investment advice.
Celestica (CLS) Analyst Forecast & Price Prediction
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