Celestica (TSE:CLS) Stock Jumps 12.4% – Here’s What Happened

Shares of Celestica Inc. (TSE:CLS) (NYSE:CLS) traded up 12.4% during mid-day trading on Tuesday. The stock traded as high as C$396.69 and last traded at C$390.15. Approximately 341,533 shares traded hands during mid-day trading, a decline of 28% from the average daily volume of 473,955 shares. The stock had previously closed at C$346.97.

Celestica News Summary

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Q3 results exceeded guidance. Revenue rose 83% year over year to approximately US$5.83 billion, while adjusted EPS increased 109% to US$3.30. Adjusted operating margins reached 8.5%, indicating strong operating leverage. Celestica third-quarter financial results
• Positive Sentiment: Celestica raised its 2026 forecast. The company now expects roughly US$21 billion in revenue, above the FactSet consensus of US$20.62 billion, and projects adjusted EPS of approximately US$11.55. Celestica raises 2026 revenue outlook
• Positive Sentiment: The longer-term outlook improved. Management set a US$40 billion revenue target for 2027 and expects accelerating growth and expanding adjusted operating margins, supported by AI-related infrastructure demand. Celestica lifts outlook through 2027
• Positive Sentiment: Analyst commentary added support. BNP Paribas identified additional potential catalysts, including possible growth tied to Google, while market coverage characterized the results as evidence of an AI-infrastructure “supercycle.” Celestica outlook and BNP Paribas commentary
• Neutral Sentiment: The strong results follow a period of elevated volatility, and the stock’s premium valuation means investors may remain sensitive to execution, customer concentration and whether AI-driven growth meets the ambitious 2027 target.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on CLS shares. UBS Group upgraded Celestica from a “hold” rating to a “buy” rating and set a C$430.00 price target on the stock in a research note on Monday, August 24th. FBN Securities raised Celestica to a “strong-buy” rating in a research note on Tuesday, September 15th. Scotiabank upgraded shares of Celestica to a “strong-buy” rating in a report on Tuesday, August 11th. Finally, Sanford C. Bernstein raised shares of Celestica to a “strong-buy” rating in a research report on Wednesday, September 30th. Seven equities research analysts have rated the stock with a Strong Buy rating and two have assigned a Buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Strong Buy” and an average target price of C$388.33.

Celestica Price Performance

The stock has a market capitalization of C$49.24 billion, a price-to-earnings ratio of 40.55, a price-to-earnings-growth ratio of 0.14 and a beta of 1.36. The business’s 50 day simple moving average is C$461.71 and its 200-day simple moving average is C$461.30. The company has a debt-to-equity ratio of 32.68, a quick ratio of 0.54 and a current ratio of 1.23.

Celestica (TSE:CLS) (NYSE:CLS) last posted its quarterly earnings data on Monday, October 26th. The company reported C$4.70 earnings per share (EPS) for the quarter. The business had revenue of C$8.30 billion during the quarter. Celestica had a net margin of 7.16% and a return on equity of 50.64%. Research analysts anticipate that Celestica Inc. will post 5.03 earnings per share for the current year.

About Celestica

Celestica is a technology leader dedicated to driving customer success and market advancements. With deep expertise in design, engineering, manufacturing, supply chain, and platform solutions, Celestica enables critical data center infrastructure for AI, cloud and hybrid cloud, and advances technologies in high-growth markets. With a talented team and a strategic global network, Celestica helps its customers achieve competitive advantages.