
Celestica (CLS) Stock Forecast & Price Target
Celestica (CLS) Analyst Ratings
Bulls say
Celestica Inc. has demonstrated significant growth in its hyperscaler business, which surged 66% year-over-year to $4.8 billion in FY24, accounting for 50% of total revenue, with projections indicating this will rise to 57% by FY25. The company's five-year hyperscaler revenue growth achieved a compound annual growth rate (CAGR) of 54%, emphasizing a continued shift in its revenue composition from just 16% in FY20. Additionally, Celestica is on track to improve its adjusted EBIT margin to 8.0% by FY27, alongside a forecasted 26% year-over-year increase in earnings per share to $7.15, showcasing strong operating leverage and a focus on productivity enhancements.
Bears say
Celestica Inc's revenue from the Advanced Technology Solutions (ATS) segment declined by 4% year-over-year to $781 million, primarily due to deliberate portfolio changes within the Aerospace and Defense (A&D) business. Furthermore, the Connectivity & Cloud Solutions (CCS) segment experienced a significant 38% year-over-year reduction in Enterprise revenue during the first half of FY25, contrasting sharply with a 40% growth in FY24, highlighting challenges stemming from ongoing program transitions. The company faces multiple headwinds, including a slowdown in hyperscaler data center investments, potential loss of key customers, and macroeconomic uncertainties that could further impact revenue and profitability.
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
Start investing in Celestica (CLS)
Order type
Buy in
Order amount
Est. shares
0 shares