Twenty of 23 analysts covering Celestica rate the stock a buy, with a consensus price target of $438.86. The broad bullish coverage follows the company's Q2 earnings beat and a $3 billion equity raise to fund AI infrastructure expansion.
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Celestica draws 20 buy ratings as AI infrastructure demand accelerates
Twenty of 23 analysts covering Celestica rate the stock a buy, with a consensus price target of $438.86, as hyperscalers accelerate data center upgrades.
Scotiabank resumed coverage with an Outperform rating and a $500 price target, citing Celestica's role as a co-design partner rather than a traditional contract manufacturer. CIBC said the company's $3.45 billion equity raise materially de-risks its AI ramp with long-term permanent capital.
The consensus target implies about 26.9 percent upside from the current price of $345.91, with individual targets ranging from $300 to $510. One analyst rates the stock a strong buy, two hold, and none recommend selling. Barclays analyst Tim Long lowered the firm's target to $406 from $430 while keeping an Overweight rating after the company announced a $3 billion equity offering.
Celestica reported second-quarter earnings per share of $2.54 on July 27, beating consensus estimates of $2.29, with revenue up 62.4 percent year over year. The company's market capitalization stands at $34.04 billion, with trailing-twelve-month revenue of $15.59 billion, up 47.3 percent. Analysts expect earnings to grow 60.08 percent in the coming year, from $9.97 to $15.96 per share.
The $3 billion equity offering, priced at $310 per share with Bank of America and Citi as joint book-running managers, raised permanent capital to support investments in capital expenditures and working capital for AI infrastructure expansion. The offering was completed on Aug. 7.
The stock trades at 35.95 times earnings, below the technology sector average of 75.31, and has gained 16.9 percent year to date from $295.88. The 52-week range spans $179.01 to $474.03. Celestica's valuation sits below peers in the AI hardware supply chain, where companies like Arista Networks and Broadcom trade at higher multiples on similar growth trajectories.
Celestica, headquartered in Toronto, provides electronics manufacturing and supply chain solutions to original equipment manufacturers across communications, cloud infrastructure, healthcare, industrial, and aerospace end markets. The company was founded in 1994 as a spin-off of portions of IBM's manufacturing operations.
The broad analyst consensus reinforces the view that Celestica, as a key supplier to the AI data center buildout, will continue to benefit from hyperscaler capital spending. Investors will watch the next earnings report for updated segment margins and any further guidance on AI infrastructure demand.
This article is for informational purposes only and does not constitute investment advice.
