CIBC just raised its price target on Celestica

In an April 14 note, CIBC World Markets analyst Todd Coupland said he expects Celestica (Celestica Stock Quote, Chart, News, Analysts, Financials NYSE:CLS) to deliver “strong” first-quarter results and a solid full-year outlook when the company reports after the close on April 28.

As reported by The Globe and Mail, Coupland maintained his “Outperformer” rating and raised his target price to US$425.00 from US$360.00, saying both management guidance and current FactSet consensus for the first quarter and fiscal 2026 still look conservative.

“We continue to view management’s guidance, and current FactSet consensus for Q1 and 2026, as conservative,” he said, pointing to improved visibility into capital spending plans at key hyperscale customers including Google, Meta, Amazon and OpenAI.

He said Celestica has consistently outperformed expectations, noting that since March 2022, results have come in about five per cent above consensus on revenue and 10% above on EPS on average. He also noted that 2025 results ended up 20% above the initial outlook provided in October 2024, and said recent announcements suggest that trend has continued, with customer demand being pulled forward from 2027 into 2026.

Coupland said the higher target also reflects stronger peer valuations in networking and EMS, as well as better visibility into AI data-centre spending. “We raised our target multiples for Celestica to reflect improved visibility to upward revisions in AI data centre capex spending from significantly improved model performance,” he said.

He added that Celestica’s position in data-centre networking switches and its growing enterprise server programs continue to strengthen the story, while a clearer multi-year ramp in 1.6T networking programs beginning in late 2026 and accelerating into 2027 should provide another leg of growth, supported by multiple customers and partners including Broadcom.

Celestica is scheduled to release first-quarter 2026 results after market close on Monday, April 27, and host its conference call the following morning.

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