Stock Price & Analysis

Based on the analysis of Celestica Inc. (CLS), the stock presents a compelling opportunity for long-term growth despite recent volatility. Analysts maintain a "Strong Buy" rating with a significant upside potential, suggesting it's a good time to buy.

The price target for CLS stock in 2025 is projected to reach $140, driven by strong revenue growth and new AI hardware contracts. Analysts maintain a "Strong Buy" rating with an average target of $147.50, indicating significant upside potential. However, short-term uncertainties like insider selling and trade tariffs may impact performance.

The S1 support level for CLS Stock is $79.99 ,The R1 resistant level for CLS Stock is $103.64.

As of the end of day on 2025-03-14, the price of CLS Stock was $91.56.

The target price for CLS Stock according to analyst rating is 147.50, with the highest price target at 166.00 and the lowest at 107.00. Analysts have a Strong Buy rating on CLS Stock overall.

The market cap of CLS is $10.6B.

Analysis and Insights

1. Valuation Metrics:
   Celestica's current valuation metrics suggest potential overvaluation. The P/E ratio ranges from 16.76 to 25.59, and the EV/EBITDA ratio is between 9.7 and 14.41, both of which are elevated compared to industry peers. The price-to-sales (PS) ratio of 0.65 to 1.14 and price-to-book (PB) ratio of 3.12 to 5.65 further indicate a premium valuation.

2. Analyst Sentiment:
   Analysts maintain a "Strong Buy" or "Buy" rating, with an average price target of $147.50, implying significant upside potential. However, the stock's recent 14% drop due to insider selling and U.S.-Canada trade tariffs raises concerns about short-term volatility.

3. Fundamental Strength:
   Despite valuation concerns, Celestica's strong quarterly performance, with revenue growth of 8.3% in 2024, and its leadership in AI infrastructure and hyperscale data centers, supports long-term growth prospects.

4. Conclusion:
   While Celestica's valuation appears stretched, its strong fundamentals and analyst confidence suggest it is not significantly overvalued. However, investors should monitor tariff risks and insider sentiment.

Celestica Inc. is engaged in designing, manufacturing and providing hardware platform and supply chain solutions. It delivers supply chain solutions globally to customers in two operating segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of its ATS end market and is comprised of its Aerospace & Defense (A&D), Industrial, HealthTech, and Capital Equipment businesses. Its Capital Equipment business is comprised of its semiconductor, display, and robotics equipment businesses. The CCS segment consists of its communications and enterprise end markets. The enterprise end market is comprised of Celestica’s servers and storage businesses. It offers a range of product manufacturing and related supply chain services to customers in both of its segments, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, and systems integration.

Based on strong revenue growth and expansion in AI and data center solutions, Celestica (CLS) is expected to reach $200 by 2030. The stock is supported by a perfect Smart Score of 10 and a $147.50 average price target, with robust demand in critical growth areas like AI-optimized systems. Recent Fibonacci levels also suggest strong support at $112, reinforcing long-term bullish momentum.

CLS has a total of 26554 employees.