Is Celestica still a buy?

The stock has been on fire since September, but Stifel analyst Ruben Roy thinks there is still money to be made on Celestica (Celestica Stock Quote, Chart, News, Analysts, Financials NYSE:CLS).

The analyst says CLS may be partly driven by AI hype at the moment, but argues that something more long-term is afoot.

“While we have seen multiple re-rating as CLS has been identified as a beneficiary of AI infrastructure spend, we believe that we remain in the early stages of a long-tailed investment cycle,” he wrote. “Recent new HPS customer program wins would indicate that CLS continues to execute against this longer-term opportunity. We also expect gradual stabilization and improvement in the company’s Advanced Technology Solutions (ATS) segment as we progress through 2025.”

As reported by The Globe and Mail, Roy February 4th maintained his “Buy” rating and price target of (US) $140.00 on Celestica.

“We believe Celestica will continue to benefit from multiple expansion as the company continues to execute on adding specialized capabilities to serve the emerging needs of a broad and diverse customer base.” Roy added. “Believe that a focused and long, multi-year effort through investments in engineering capabilities, strategic manufacturing footprint and process innovation, Celestica has emerged as a key partner to leading U.S. hyperscaler customers. We expect Celestica to benefit, longer-term, from a market leadership position as AI infrastructure investments continue over the next several year.”