CLS Stock Recent News
CLS LATEST HEADLINES
Celestica (CLS) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
CLS appears primed for further stock price appreciation despite certain short-term headwinds.
The average of price targets set by Wall Street analysts indicates a potential upside of 34.5% in Celestica (CLS). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
From a technical perspective, Celestica (CLS) is looking like an interesting pick, as it just reached a key level of support. CLS recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
Raising guidance? In this uncertainty?
Celestica Inc CLS reported better-than-expected first-quarter earnings after the closing bell on Thursday.
Celestica Inc. investors endured tremendous volatility in April, but the stock has also recovered 50% from this month's lows. CLS' hyperscaler customers continue to demonstrate conviction in their CapEx outlook, justifying its key position as an EMS leader in the AI value chain. Celestica is confident of passing on most of the tariffs to its customers, beating back worries about the need to absorb much of these costs into its margins.
Celestica (CLS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Celestica's strong earnings report and visibility into 2026, despite economic challenges, support a bullish stance at $90 per share. The company raised its 2025 revenue guidance, indicating robust demand and strong future revenue pipeline, especially from cloud and AI projects. Despite carrying $640 million in net debt, Celestica's $350 million free cash flow can clear this in 2 years, justifying its 29x forward FCF valuation.
The recent market correction has made CLS a lot more appealing, bringing it closer to our buy zone/fair value estimates. This is aided by the double beat FQ1 '25 earnings call and raised FY 2025 guidance, no matter the recent market fears surrounding the intensified tariff war. This is on top of the promising commentaries offered by market leaders in the semiconductor/hyperscaler industry, with it underscoring the durability of data center capex boom.