
Celestica (CLS) Stock Forecast & Price Target
Celestica (CLS) Analyst Ratings
Bulls say
Celestica Inc has demonstrated robust growth, particularly within its Connectivity & Cloud Solutions segment, where hyperscaler revenue surged 66% year-over-year, reaching $4.8 billion and contributing to 50% of total revenue in FY24. The company is experiencing a favorable shift towards a higher-margin mix of High-Performance Solutions and Original Design Manufacturers, projected to comprise 37% of revenue by FY25, which supports a higher valuation multiple. Additionally, Celestica's earnings per share (EPS) are expected to increase by 22% over the next twelve months, significantly outpacing peers in both the Electronics Manufacturing Services and Original Design Manufacturing sectors.
Bears say
Celestica Inc is experiencing a concerning decline in its Advanced Technology Solutions (ATS) segment, with a margin reduction of 20 basis points sequentially to 4.6% in Q4, reflecting lower operating leverage. The company's outlook for FY25 indicates stagnant ATS revenue growth of only 1% Y/Y, a significant downgrade from the previous forecast of low single-digit growth, compounded by an expected 21% decline in Connectivity & Cloud Solutions (CCS) Enterprise revenue due to challenges from AI/ML program transitions. Additionally, while net debt has decreased to $625 million, the significantly slowed revenue growth guidance hints at potential operational difficulties ahead, creating a negative outlook for Celestica’s stock performance.
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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