
Celestica (CLS) Stock Forecast & Price Target
Celestica (CLS) Analyst Ratings
Bulls say
Celestica Inc. demonstrates a robust growth trajectory, particularly in its HyperScale and Original Design Manufacturer (HPS/ODM) operations, which are projected to account for 37% of revenue by FY25, an increase from 29% in FY24. The company's Connectivity & Cloud Solutions segment has experienced remarkable year-over-year revenue growth, with its hyperscaler business rising 66% to $4.8 billion, representing 50% of total revenue in FY24, while the remaining CCS revenue also saw a significant increase of 57% year-over-year in Q4. Additionally, Celestica's strong demand for networking switches within the hyperscaler segment underscores its favorable market position, contributing to expectations for a 22% increase in earnings per share over the next twelve months, outperforming its peers in the Electronic Manufacturing Services (EMS) and Original Design Manufacturer (ODM) sectors.
Bears say
Celestica Inc's financial outlook is negatively impacted by declining margins in its Advanced Technology Solutions (ATS) segment, which experienced a sequential reduction of 20 basis points to 4.6% in Q4, reflecting weaker operating leverage. For fiscal year 2025, the company's expectations of flat ATS revenue growth, revised down from low single-digit increases, coupled with a significant projected 21% year-over-year decline in Connectivity & Cloud Solutions (CCS) Enterprise revenue, underline the challenges ahead. Additionally, guidance for Q1 indicates a slowdown in revenue growth to a mid-point of 15%, marking a decrease from the 19% year-over-year growth reported in Q4 of the previous fiscal year, which raises concerns over the company's ability to maintain operational momentum amidst market transitions.
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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