
Celestica (CLS) Stock Forecast & Price Target
Celestica (CLS) Analyst Ratings
Bulls say
Celestica Inc. has demonstrated significant growth within its Connectivity & Cloud Solutions segment, with hyperscaler revenue soaring 66% year-over-year to $4.8 billion in FY24, accounting for 50% of total revenue. As a result of this strong performance, revenue estimates for the next three fiscal years have been revised upward, projecting figures of $11.6 billion in FY25, $13.3 billion in FY26, and $15.8 billion in FY27. Furthermore, the company anticipates an improvement in adjusted EBIT margin to 8.0% by FY27 and a notable increase in EPS to $7.15 by FY27, reflecting robust demand for its products and successful ramping of new custom ASIC programs.
Bears say
Celestica Inc.'s Connectivity & Cloud Solutions segment experienced a significant year-over-year decline of 37% in Enterprise revenue, amounting to $433 million, despite a slight quarter-over-quarter increase. The company's guidance for future revenue remains concerning, with expectations for flat revenue growth in the Advanced Technology Solutions segment for FY25 and continued declines in CCS Enterprise revenue projected in the mid-twenties percentage range for Q3. Additionally, the decision to not renew a margin-dilutive aerospace program further highlights the challenges that may hinder revenue growth in the near term, casting a shadow over the financial outlook for the company.
This aggregate rating is based on analysts' research of Celestica and is not a guaranteed prediction by Public.com or investment advice.
Celestica (CLS) Analyst Forecast & Price Prediction
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