JPMorgan Ups Celestica (CLS) PT to $295, Cites OpenAI-Driven Revenue Visibility

Core Viewpoint - Celestica Inc. is highlighted as a strong investment opportunity, particularly due to its relationship with OpenAI and the anticipated revenue growth from non-semiconductor content [1][3]. Financial Performance - For Q2 2025, Celestica reported revenue of $2.89 billion, a 21% increase year-over-year from $2.39 billion in Q2 2024 [2]. - The adjusted EPS for Q2 was $1.39, reflecting a 54% growth compared to $0.90 in Q2 2024 [2]. - The Connectivity & Cloud Solutions (CCS) segment generated $2.07 billion in revenue, up 28%, with Hardware Platform Solutions within CCS seeing an 82% increase to approximately $1.2 billion [3]. - The Advanced Technology Solutions (ATS) segment reported revenue of $0.82 billion, marking a 7% increase [3]. Analyst Insights - JPMorgan analyst Samik Chatterjee raised the price target for Celestica from $225 to $295 while maintaining an Overweight rating, citing increased revenue visibility driven by OpenAI [1][3]. - The revenue opportunity for Celestica is linked to the $10 billion of rack revenue, emphasizing the potential for growth in non-semiconductor areas [1]. Company Overview - Celestica Inc. provides supply chain solutions across Asia, North America, and internationally, operating through two segments: Advanced Technology Solutions and Connectivity & Cloud Solutions [4].