Celestica

CLS · TORONTO

$260.01−$9.00 (−3.35%)TodayMarket closed · Oct 23, 7:58 PM ET

Prev close $269.01

CLS analyst rating

BuyConsensus of 20 analysts over the last 12 months. 95% rate it a buy.

Strong buy0
Buy19
Hold1
Underperform0
Sell0

12-month price target · 10 analysts

Average $349.88 (+34.6% upside)

Low: $308.91
Now: $260.01
High: $410.76

Upgrades and downgrades

The latest rating actions, newest first

CLS analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Bernstein	Sep 30, 2026	Initiates	Outperform	$520.00	0%
FBN Securities	Sep 15, 2026	Initiates	Outperform	$375.00	56%
UBS	Aug 24, 2026	Upgrade	Neutral → Buy	$410.00 → $430.00	64%
Scotiabank	Aug 11, 2026	Initiates	Sector Outperform	$500.00	41%
Barclays	Aug 7, 2026	Maintains	Overweight	$430.00 → $406.00	57%
JP Morgan	Jul 29, 2026	Maintains	Overweight	$445.00 → $485.00	46%
Wolfe Research	Jul 29, 2026	Maintains	Outperform	$425.00 → $475.00	73%
Barclays	Jul 29, 2026	Maintains	Overweight	$441.00 → $430.00	57%
Rothschild & Co	May 1, 2026	Initiates	Buy	$460.00	40%
JP Morgan	Apr 29, 2026	Maintains	Overweight	$410.00 → $425.00	69%

The case for and against

Updated Oct 16, 2026

Bull case

Celestica is benefiting from a successful shift from turnkey manufacturing toward design-led platform solutions, with HPS reaching $1.9B in FQ2 2026 and 41% of revenue, which improves mix and raises the earnings power of each program. Its core CCS franchise is reinforced by roughly 41% share of 200G-and-above Ethernet ports and 55% of custom switch spend, while Enterprise revenue rose 167% Y/Y on the ramp of hyperscaler AI compute, underscoring durable demand in AI infrastructure. The company has paired this growth with execution and capital efficiency, posting six straight quarters of accelerating revenue growth and record NG operating margins up to 8.2% in FQ2 2026, supported by net cash of about $2.7B and a compressed cash conversion cycle.

Bear case

Celestica is facing a supply-constrained but fragile growth story, where component lead times beyond 52 weeks and management’s admission that real demand exceeds guided revenue mean upside is gated by networking silicon and memory bottlenecks rather than durable end-demand. At the same time, hyperscaler dependence is extreme and rising, with three customers accounting for 63% of FQ2 2026 revenue and that share remaining non-contractual, while the August $3B equity raise adds dilution and interrupts buybacks. Fundamentals are further pressured by flat-to-down gross margin, with NG GM% at 11.5% versus an 11.7% peak, and by heavier capital intensity and working capital, including $3.40B of inventory and capex of $264M or 5.6% of revenue.

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