Analysts Retain Bullishness For Celestica Inc (CLS)

Core Insights - Celestica Inc. (NYSE:CLS) is recognized as a strong investment opportunity within the consumer cyclical sector, particularly due to its role in the AI ecosystem by providing essential infrastructure for data centers [1] Group 1: Analyst Ratings and Price Targets - Barclays maintained an Overweight rating on Celestica's shares and raised the price target to $359 from $357 [2] - Citi upgraded Celestica's stock to Buy from Hold, keeping its price target at $375, citing expectations of over 40% growth in hyperscaler capital expenditure in 2026 after a 75% increase in 2025 [2] Group 2: Financial Performance - Celestica reported third-quarter earnings on October 27th, achieving $3.19 billion in revenue and $1.58 in adjusted EPS, surpassing analyst expectations of $3.04 billion and $1.49 respectively [3] - Following the earnings announcement, Celestica's shares rose by as much as 10%, and management increased the full-year revenue guidance to $12.2 billion from $11.55 billion due to strong demand [3] Group 3: Demand Insights - During the third-quarter earnings call, management indicated strong visibility into customer demand, with forecasts extending 12 to 15 months ahead, particularly related to 2026 budgeting and spending commitments [4] - Management noted that certain customers have made commitments that provide assurance regarding the longevity and scale of their programs, enhancing visibility into future demand [4]