Celestica (NYSE:CLS) Trading Up 7.8% Following Analyst Upgrade

Celestica, Inc. (NYSE:CLS) (TSE:CLS)’s stock price shot up 7.8% on Thursday after Royal Bank Of Canada raised their price target on the stock from $440.00 to $450.00. Royal Bank Of Canada currently has an outperform rating on the stock. Celestica traded as high as $357.97 and last traded at $353.9010. 3,477,127 shares traded hands during trading, an increase of 45% from the average daily volume of 2,404,688 shares. The stock had previously closed at $328.43.

Several other research firms also recently commented on CLS. BMO Capital Markets lifted their target price on shares of Celestica from $370.00 to $450.00 and gave the stock an “outperform” rating in a research report on Friday, April 24th. TD Cowen upgraded shares of Celestica from a “hold” rating to a “buy” rating and upped their price target for the company from $350.00 to $430.00 in a research report on Wednesday, April 29th. Barclays dropped their price target on shares of Celestica from $441.00 to $430.00 and set an “overweight” rating for the company in a research note on Wednesday. Rothschild & Co Redburn initiated coverage on shares of Celestica in a report on Friday, May 1st. They set a “buy” rating and a $460.00 price target on the stock. Finally, Bank of America reissued a “buy” rating on shares of Celestica in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Celestica presently has an average rating of “Moderate Buy” and a consensus target price of $437.00.

Insider Buying and Selling

In related news, Director Michael Max Wilson sold 4,168 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $333.31, for a total value of $1,389,236.08. Following the sale, the director directly owned 24,718 shares in the company, valued at $8,238,756.58. This represents a 14.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Mandeep Chawla sold 17,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $399.65, for a total transaction of $6,794,050.00. Following the sale, the chief financial officer directly owned 82,444 shares of the company’s stock, valued at $32,948,744.60. This represents a 17.10% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 161,168 shares of company stock valued at $63,190,485 over the last ninety days. 1.10% of the stock is owned by company insiders.

Key Stories Impacting Celestica

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Strong earnings beat: Celestica reported second-quarter EPS of $2.54, ahead of the $2.29 consensus, while revenue reached $4.68 billion versus expectations of $4.30 billion. Revenue increased 62.4% year over year, reinforcing the company’s growth momentum. Celestica Shares Up 9.6% on Earnings Beat
• Positive Sentiment: Higher outlook and improving visibility: Management raised its 2026 outlook, citing strong AI infrastructure demand, networking programs and better customer visibility. The earnings call also pointed to potentially faster growth and margin expansion in 2027. Celestica Q2 Earnings Call Points to Faster Growth in 2027
• Positive Sentiment: AI exposure remains the key catalyst: Celestica is benefiting from increasing cloud spending on AI networking, storage and computing, which is expanding demand for its higher-value electronics manufacturing and technology solutions. CLS Shows How AI Networking is Reshaping Electronics Manufacturing
• Positive Sentiment: Analyst support: JPMorgan raised its price target to $485 and RBC increased its target to $450; both firms maintain bullish ratings. Market commentary also highlights CLS as a leading AI-focused EMS stock with further potential upside after its pullback. Buy 2 Top-Ranked Beaten-Down AI-Led EMS Stocks
• Neutral Sentiment: Valuation is the main concern: Analysts are questioning whether continued earnings growth and execution can justify Celestica’s substantially richer valuation after its sharp rally. Brokerage recommendations remain favorable, but such ratings can be overly optimistic. Is CLS Stock Still Worth Buying After Another Strong Earnings Beat?

Hedge Funds Weigh In On Celestica

A number of hedge funds have recently bought and sold shares of the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in Celestica in the fourth quarter valued at $28,000. Ascentis Independent Advisors bought a new position in shares of Celestica in the 1st quarter worth about $29,000. Swiss RE Ltd. bought a new position in shares of Celestica in the 4th quarter worth about $29,000. Cullen Frost Bankers Inc. bought a new position in shares of Celestica in the 4th quarter worth about $30,000. Finally, Sittner & Nelson LLC acquired a new position in shares of Celestica in the 4th quarter valued at about $31,000. Institutional investors own 67.38% of the company’s stock.

Celestica Price Performance

The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.73 and a current ratio of 1.23. The business has a 50 day moving average price of $361.45 and a 200-day moving average price of $333.18. The company has a market capitalization of $40.69 billion, a price-to-earnings ratio of 36.79, a P/E/G ratio of 0.81 and a beta of 2.05.

Celestica (NYSE:CLS) (TSE:CLS) last released its earnings results on Monday, July 27th. The technology company reported $2.54 EPS for the quarter, topping the consensus estimate of $2.29 by $0.25. The business had revenue of $4.68 billion during the quarter, compared to analysts’ expectations of $4.30 billion. Celestica had a return on equity of 39.96% and a net margin of 7.16%.The firm’s revenue was up 62.4% on a year-over-year basis. During the same quarter last year, the firm posted $1.39 earnings per share. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. Research analysts predict that Celestica, Inc. will post 9.57 EPS for the current fiscal year.

About Celestica

Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company’s service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.