CLS stock wins price target raise at CIBC

Its stock has been on fire since this past summer, but CIBC thinks there is still money to be made on Celestica (Celestica Stock Quote, Chart, News, Analysts, Financials NYSE:CLS)

As reported by The Globe and Mail on October 17, CIBC World Markets analyst Todd Coupland reiterated his rating of “Outperformer” for CLS and raised his one-year price target on the stock from $25.00 to $33.00.

The analyst explained the reasoning behind his increased expectations.

“Its revenue and earnings-per-share growth is accelerating from a broadening set of drivers,” Coupland wrote. “These provide increased confidence in our conservative forecast for 2023 and have prompted us to raise our 2024 forecast for adjusted EPS to $2.75 (prior $2.50) on higher revenue growth of 10 per cent (vs. 5 per cent prior). Trends are strong for Celestica’s business, particularly due to accelerating demand related to generative AI (GEN AI) within its enterprise business (26 per cent of revenue) from hyperscalers like Google, Meta and Amazon. Order visibility is through the first half of 2024. Hyperscaler GEN AI plans for the second half of 2024 to serve as a catalyst with some plan updates expected by year-end.”

Celestica will report its Q3, 2023 results after the market close on October 26.

At press time, shares of CLS were up 0.1 per cent to $26.85.