Should I Buy CLS? CLS 2026 Analysis

Should You Buy Celestica Inc (CLS) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

300.000

1 Day change

-13.10%

52 Week Range

363.400

Analysis Updated At

2026/01/28

Buy CLS now for a long-term beginner portfolio. The stock is in a strong uptrend (bullish MA stack and expanding positive MACD), fundamentals show very strong growth (2025/Q3 revenue +27.8% YoY, EPS +208% YoY), and sentiment/positioning is supportive (hedge funds buying aggressively, congress purchases with no sales, and bullish options put/call ratios). While the price is pressing near a key resistance zone around ~343 and momentum is hot, the overall setup still favors owning it now rather than waiting for a better entry.

Technical Analysis

Trend and momentum are bullish. Moving averages are strongly positive (SMA_5 > SMA_20 > SMA_200), and MACD histogram is +3.053 and expanding, indicating strengthening upside momentum. RSI(6) is 72.831 (momentum is stretched), which often aligns with short-term pullback risk but does not negate the prevailing uptrend. Price is trading right at the first resistance (R1 ~343.025) with the next resistance at ~361.483; key support is near the pivot ~313.149 (then ~283.273). Pattern-based projection shows ~+6.68% over the next month, consistent with trend continuation. **Intellectia Proprietary Trading Signals** - [AI Stock Picker](module://ai_stock_pick): no signal on given stock today. - [SwingMax](module://swingmax): No signal on given stock recently.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Options sentiment leans bullish: put/call is low on both open interest (0.7) and especially volume (0.3), implying traders are positioning more on the call side. Volatility is elevated (30D IV ~84.5; IV percentile ~82.4), and activity vs averages is high (today volume vs 30D avg ~45%, OI vs avg ~109%), consistent with heightened interest ahead of catalysts (notably earnings). This supports a bullish bias, though it also indicates the market is pricing in larger moves.

Technical Summary

Sell

Buy

Positive Catalysts

- Analyst support strengthening: BofA initiated Buy with $400 PT; RBC reiterates Outperform with $400 PT, highlighting AI-driven upgrade cycle in high-speed data center switches and custom ASIC accelerated servers.
- Strong demand narrative: expectations for Q4 results remain strong (street looking for ~1.76 EPS and ~$3.49B revenue).
- Positioning tailwinds: hedge funds reported as buying (buying amount up ~309% QoQ); congress trading shows 4 purchases and 0 sales in last 90 days, suggesting influential-buyer optimism.
- Technical trend: strong uptrend with bullish MA alignment and expanding MACD.

Neutral/Negative Catalysts

can reprice the stock quickly in either direction.

Financial Performance

Latest reported quarter: 2025/Q3. Growth was very strong: revenue $3.194B (+27.79% YoY), net income $267.8M (+199.22% YoY), EPS $2.31 (+208.00% YoY), and gross margin 12.67 (+26.95% YoY). The mix of rapid earnings growth and improving margins supports the bull case that CLS is benefiting from AI/data-center infrastructure demand and operating leverage.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend is constructive overall with higher-end price targets centered around $400. BofA initiated coverage (2026-01-28) at Buy/$400, framing CLS as a key beneficiary of AI-driven data center switching and custom ASIC server growth with share gains. RBC (2026-01-22) reiterated Outperform/$400 and downplayed competitive-share concerns as an overreaction, while TD Securities (2026-01-21) remains more cautious with Hold/$305 despite acknowledging strong execution. Barclays previously maintained Overweight and nudged PT to $359 (2025-11-14). Wall Street pros: strong AI infrastructure exposure, share gains, and strong execution/margins. Wall Street cons: customer concentration/competition risk (hyperscaler programs) and headline/legal risk from investigations.

11 Analyst Rating

Wall Street analysts forecast CLS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLS is 376.73 USD with a low forecast of 305 USD and a high forecast of 440 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

9 Buy

2 Hold

0 Sell

Strong Buy

Current: 345.230

Low

305

Averages

376.73

High

440

Current: 345.230

Low

305

Averages

376.73

High

440

BofA

initiated

$400

AI Analysis

2026-01-28

New

Reason

BofA

Price Target

$400

AI Analysis

2026-01-28

New

initiated

Reason

BofA initiated coverage of Celestica with a Buy rating and $400 price target. As a "leading provider of white-box switches," Celestica will be a beneficiary of an AI-driven upgrade boom for high-speed data center switches as well as strong growth in custom ASIC accelerated servers, the analyst tells investors. FY27 should be a strong year with many new programs ramping, says the analyst, who expects continued market share gains.

RBC Capital

Outperform

maintain

$400

2026-01-22

Reason

RBC Capital

Price Target

$400

2026-01-22

maintain

Outperform

Reason

RBC Capital reiterated an Outperform rating and $400 price target on Celestica (CLS) following a DigiTimes report claiming that Inventec will gain a larger role in Google (GOOGL) TPU manufacturing. Celestica shares fell following the report, which also said that Inventec intends to significantly increase its AI server production capacity in 2026, the analyst tells investors in a research note. The firm said that the initial drop in Celestica shares was an overreaction, noting it is the firm's understanding that Celestica has maintained the majority of TPU assembly volumes to date due to higher production yields. While competition and share shifts are always risks that may erode Celestica's future growth trajectory, the firm believes Celestica is well positioned to continue to benefit from strong hyperscaler demand momentum through 2027.

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CLS Should I Buy

CLS Should I Buy

Should You Buy Celestica Inc (CLS) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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