
Celestica (CLS) Stock Forecast & Price Target
Celestica (CLS) Analyst Ratings
Bulls say
Celestica Inc. is positioned for growth, primarily due to a substantial increase in its Connectivity & Cloud Solutions segment, which saw a year-over-year revenue rise of 57% in the fourth quarter, reflecting strong demand for networking switches from hyperscalers. The company's strategic shift towards high-performance solutions (HPS) is projected to increase its revenue mix from 29% in FY24 to 37% in FY25, supporting a greater valuation multiple. Additionally, Celestica's earnings per share (EPS) are expected to grow by 22% over the next twelve months, significantly surpassing the average growth rates of its EMS and ODM peers, which stand at 13% and 21%, respectively.
Bears say
Celestica Inc's Advanced Technology Solutions (ATS) segment experienced a decline in operating margin, falling 20 basis points sequentially to 4.6%, indicating reduced operating leverage and an unfavorable financial outlook. The company's revenue expectations for FY25 have diminished, projecting flat growth for ATS compared to previous low single-digit growth estimates and a substantial 21% decline in CCS Enterprise revenue due to challenges from AI/ML compute program transitions. Despite a reduction in net debt to $625 million, the slowing revenue growth signals potential underlying issues within the firm's core business segments, contributing to 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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