CLS Stock Recent News

Celestica's robust growth is fueled by surging demand for hardware platform solutions, especially networking switches for hyperscalers. Recent US-China tariff reductions are a major positive catalyst, likely paving the way for future guidance upgrades, as management had earlier assumed no changes to tariff policies. Valuations are at a premium vs peers, but the risk here has eased slightly, as CLS stock today is at a lower premium vs peers than it was months ago.

Celestica (CLS) is well positioned to outperform the market, as it exhibits above-average growth in financials.

Celestica is a top beneficiary of AI, cloud, aerospace, and defense trends, with strong financial momentum and double-digit growth outlook for 2025. The company's strategic shift to complex, high-value manufacturing and end-to-end solutions drives superior margins and customer stickiness. Despite rapid growth and improved profitability, Celestica trades at modest multiples, offering significant re-rating and upside potential if execution continues.

Celestica (CLS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

I remain extremely bullish due to robust fundamentals, strong AI tailwinds, and compelling upside potential. The company posted a solid Q1 with 20% YoY revenue growth and EPS rising from $0.86 to $1.20, driven by AI-driven data center demand. Valuation scenarios suggest a 38% to 18% upside potential, with a target price of $133, supported by a conservative 10% revenue CAGR assumption.

Celestica's Q1 2025 revenue rose 20% YoY to $2.65B, driven by 28% CCS growth and 99% HPS surge. Adjusted operating margin hit a record 7.1%, with EPS up 45% YoY to $1.20 and FCF at $94M. Customer concentration remains high, with the top 10 customers contributing 78% of revenue; one hyperscaler alone made up 28%.

Celestica's Q1 results beat expectations, with revenue and EPS exceeding consensus, leading to an upgraded rating from Buy to Strong Buy. Management's conservative guidance has been raised, and they see opportunities to gain market share despite tariff challenges, showcasing their ability to navigate complexity. Margins are expanding, particularly in the high-growth CCS segment, driving significant earnings growth and adding value.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

Celestica's quietly shifting from basic EMS into mission-critical AI/cloud manufacturing, boosting margins and EPS. Investors should see this as a rare, asymmetric growth opportunity amid volatility. Q1 crushed expectations (EPS +45%, margins hit 7.1%) thanks to hyperscaler demand and tight capital discipline, validating its strategic pivot. Buy before valuation resets higher. Risks like cyclical slowdowns and hyperscaler spending lumpiness are real, but secular tailwinds, reshoring, and a lean balance sheet comfortably outweigh short-term concerns; it's a clear Strong Buy.

Celestica (CLS) could produce exceptional returns because of its solid growth attributes.