Celestica wins new (U.S.) $500 price target at CIBC

CIBC World Markets analyst Todd Coupland says Celestica’s (Celestica Stock Quote, Chart, News, Analysts, Financials NYSE:CLS) latest beat-and-raise shows Street estimates remain too low.

As reported by the Globe and Mail, Coupland reaffirmed his “Outperformer” rating on Celestica and raised his target to US$500.00 from US$480. 00. The average target is US$445.00.

“Q2/26 was ahead across the board, and 2026/2027 targets moved well above FactSet consensus,” Coupland said.

Celestica reported Q2 revenue of US$4.7-billion, 8.1% above consensus. Adjusted EPS was US$2.54, ahead of the Street’s US$2.29 estimate and up from US$1.39 a year earlier.

Coupland said the key takeaway is that 2027 is not expected to be a “fade year.” Management now expects revenue growth to accelerate after 65% growth in 2026, with faster EPS growth supported by margin expansion.

The company’s new 2027 framework calls for US$34-billion of revenue and US$20 of EPS, well above FactSet consensus at US$27.6-billion and US$15.30, respectively.

Coupland said Celestica remains in positive revision territory as visibility and share gains improve with customers including Alphabet, Meta, Amazon, OpenAI and hyperscalers tied to AMD Helios.

The analyst said Celestica’s improved outlook reflects leadership in data centre networking switches and expanding enterprise server programs. He also sees a clearer multi-year ramp for 1.6T networking programs beginning in late 2026 and accelerating in 2027.

Coupland expects at least two new customers or platforms, OpenAI and AMD Helios, to each contribute more than 10% of revenue in 2027.

“Valuation remains attractive,” Coupland said.

Coupland said Celestica continues to screen well against electronics manufacturing services and networking peers, and deserves a premium valuation given its growth profile, improving mix, stronger AI data centre capital spending visibility through 2029 and ongoing upward revisions.

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