
Celestica (CLS) Stock Forecast & Price Target
Celestica (CLS) Analyst Ratings
Bulls say
Celestica Inc. has demonstrated significant growth in its hyperscaler business, achieving a 66% year-over-year increase to $4.8 billion, which now accounts for 50% of total revenue in FY24. Projections indicate continued revenue growth, with estimates rising to $11.6 billion in FY25 and $15.8 billion in FY27, driven by an expected increase in hyperscaler revenue to 57% of total revenue by FY25. The company's adjusted EBIT margin is forecasted to improve to 8.0% by FY27, alongside a notable EPS increase of 26% year-over-year to $7.15, reflecting strong demand for its products, particularly in the networking sector.
Bears say
Celestica Inc's Connectivity & Cloud Solutions (CCS) segment reported a significant year-over-year revenue decline of 37%, though it experienced a slight quarter-over-quarter increase, indicating volatility that may deter investors. The Advanced Technology Solutions (ATS) segment also faced challenges, with a 4% year-over-year revenue drop attributed to strategic portfolio adjustments in the Aerospace and Defense sector, leading to caution regarding the segment's growth trajectory. Overall guidance suggests a flat revenue outlook for the next quarter and fiscal year 2025, which, along with expected declines in mid-twenties percentage for CCS Enterprise revenue, raises concerns about the company's financial performance in the near term.
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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