Celestica Inc. (CLS:CA) (CLS)
BMO Capital Markets lowered its target price on Celestica Inc. to C$118 from C$140, reflecting growing concerns over external pressures affecting the broader technology and manufacturing sector. The investment bank pointed to increased uncertainty around global tariffs—particularly those related to U.S. and China trade tensions—as a key risk factor that could impact Celestica’s cost structure and profit margins. BMO also noted that recent multiple compression across the electronics manufacturing services (EMS) industry has weighed on valuation, with investors becoming more cautious amid a shifting macroeconomic environment. While the company remains fundamentally strong, BMO believes these headwinds could limit near-term upside potential in the stock.
Stock Forecast & Analysis
Based on projections from six analysts, Celestica Inc. has a 12-month average target price of CAD 141.57, suggesting notable upside from its last closing price of CAD 121.25. The average analyst rating is “Strong Buy,” indicating high conviction in the company’s growth prospects and valuation upside. This sentiment is reinforced by Stock Target Advisor, which rates the stock as “Very Bullish” based on 16 positive signals and zero negative indicators, pointing to strong fundamentals, momentum, and sentiment.
Celestica’s stock has shown impressive performance recently and over the long term, with price gains of +8.76% in the past week, +2.44% in the past month, and a remarkable +104.26% over the last year. These returns reflect growing investor confidence, potentially driven by strength in its AI and data center businesses, operational efficiency, and strategic positioning in high-growth technology segments. Despite some valuation and macroeconomic concerns, as noted by BMO in its target cut, the overall outlook from the analyst community remains very positive.
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