Time to dump your Celestica stock? Here’s what this analyst says

Ahead of Celestica’s first-quarter results due April 27, TD Cowen analyst John Shao raised his target on Celestica (Celestica Stock Quote, Chart, News, Analysts, Financials NYSE:CLS) to US$350.00 from US$330.00 and maintained his “Hold” rating, saying the company still looks set to follow its usual beat-and-raise pattern even as the recent rally leaves less room for error.

“We see a low performance shortfall risk and expect the typical ‘beat and raise’ pattern to continue,” Shao said April 20, though he added that the stock’s move higher has raised the bar and now reflects close to perfect execution. As reported by the Globe and Mail, the analyst said improved visibility into 2027 led him to lift his estimates and increase his CCS growth forecast to 44 per cent year over year.

Celestica is scheduled to report first-quarter results on April 27. Shao’s new target remains below the broader Street average of US$385.40.

Celestica announced on March 24 that board chair Michael Wilson will retire effective immediately before the company’s May 19 annual meeting and will not stand for re-election. President and CEO Rob Mionis will take over as chair, while longtime director Laurette Koellner will become lead independent director.

The company also appointed David Reeder to the board effective May 1. Reeder is currently president and CEO of Entegris and previously held senior finance roles at Chewy and GlobalFoundries. Celestica said the governance changes are intended to provide continuity, independent oversight and added semiconductor and technology expertise as the company continues to pursue growth opportunities.

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