
Celestica (CLS) Stock Forecast & Price Target
Celestica (CLS) Analyst Ratings
Bulls say
Celestica Inc.'s financial outlook is positively influenced by a remarkable growth trajectory in its hyperscaler business, which surged 66% year-over-year to $4.8 billion, constituting 50% of total revenue in FY24. Forecasts indicate that hyperscaler revenue will expand further, projected to reach 57% of Celestica's total revenue by FY25, with a five-year compound annual growth rate (CAGR) of 54% since FY20. Additionally, improvements in operational efficiency are evident, as adjusted operating margin (adj-OM) reached a record 7.6%, and the company's adjusted EBIT margin is expected to reach 8.0% by FY27, further substantiating a robust financial growth outlook.
Bears say
Celestica Inc is facing a challenging financial outlook, with its Advanced Technology Solutions (ATS) segment experiencing a revenue decline of 4% year-over-year due to a deliberate reshaping of its Aerospace & Defense portfolio. The Connectivity & Cloud Solutions (CCS) segment reported a significant revenue drop of 38% year-over-year in the first half of fiscal 2025, attributed to ongoing program transitions and a slowdown in hyperscaler data center investments. The company's reliance on key customers and the risk of reduced revenue from these relationships, coupled with increasing competition and shifts toward lower-margin services, further contributes to concerns regarding its future growth and profitability.
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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