Celestica Inc (CLS.TO) Buy, Sell or Hold

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Celestica Inc (CLS.TO)

535.52

+16.95 (3.27%)

as of Jun 8, 2026, 3:39:26 pm Market Open.

205 watching

Investor Insights

Jun 8, 2026, 12:00 am

This summary was created by AI, based on 34 opinions in the last 12 months.

Celestica Inc (CLS-T) has garnered attention due to its strong performance in the AI and cloud infrastructure space, demonstrating revenue growth exceeding 50% last quarter. While some analysts see significant upside potential, with price targets around $625, opinions are mixed, with concerns over the stock's valuation, as it has increased substantially over the past year. A common recommendation is to take profits, indicating that the stock is not trading cheaply, especially after a considerable rise. Analysts note that while the stock benefits from the ongoing AI boom and data center developments, its valuation is perceived as stretched by some experts. Thus, investors are advised to exercise caution and consider pullbacks as potential buying opportunities.

Consensus

Mixed

Valuation

Overvalued

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COMMENT

A custom manufacturer of electronics. Their manufacturing of RIM products is coming off contract so it has risks to it but it is also extremely cheap. Recently announced a share buyback. Feels that management realizes that if they can shrink capitalization, returns will improve.

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PAST TOP PICK

(A Top Pick April 23/12. Down 12.08%.) Got stopped out at $8.18 at a loss of 2.2%.

DON'T BUY

They lost a contract recently and another a while back. They are doing buy backs but he wishes they would give a dividend instead. Just a blue blood company. A lot of the board are overpaid. A lot of business was RIM-based. Loosing this really hurts. When he filters again, this one might come up.

TOP PICK

Strong balance sheet. Research in Motion (RIM-T) was their largest client and will be stopped in the next quarter or so. It was a lower margin business with them. Thinks it has been oversold. Stock is $7 and they have $2.90 in cash per share. Analysts expect them to earn $.88 this year so if you strip out the cash, the stock is trading at about 4.5X earnings. Thinks you’ll be able to see $10.

BUY

Well managed company. Overhang from Research in Motion (RIM-T) business has disappeared. It was 19% of their business and they were carrying a lot of inventory for them. Much more diversified than it used to be. Looking at defence, consumer electronics and it’s got servers. Growth rate will not be dramatic. Have some capacity to develop now that RIM is gone which he expects will have a slight effect on margins. Potential for some significant margin improvement. Really cheap compared to the other EMS manufacturers.

TOP PICK

Has been building a huge base since 2004 and he believes it is on the verge of starting an up leg.

COMMENT

Thinks of it as a manufacturer rather than a text company. Doesn’t have a lot of R & D and there are a lot of players. Margins are very thin. Well run and global but is going to be cyclical. Big risk if they lose a client. Stock should perform with technology where you are seeing a bottoming of some of the semi-conductor stocks.

DON'T BUY

Not a company at this point in time that he is interested in. Feels people there are overpaid. Seems to have difficulty gaining traction. There are a lot of companies that are of greater interest to him.

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DON'T BUY

Low value added component assembly with relentless pressure to lower prices.

BUY

Good business but earnings stream is a bit volatile. One risk is that RIM orders (20% of business) go down.

BUY

Likes this at this point. Part of their decline was due to the Japanese situation in and the view of supply chain issues, etc. All of their plants are now in Asia. Has about $4 a share in cash so there is opportunity for big dividend increases and maybe acquisitions.

BUY ON WEAKNESS

Fairly cheap but worries about how much value they can extract, as they don’t sell the end product. Financial multiples are attractive. Not sure this is the best time after their run up. In the wrong place of the value chain as they don’t get to keep any of the economic value themselves. Seem to be doing a better job of late.

DON'T BUY

Never really made anyone money unless you get it at the right stage in the cycle. Put stuff in boxes at very small margins for electronic and computer companies. When margins are squeezed, they squeeze Celestica’s margins.

BUY ON WEAKNESS

One of the stronger competitors in a very tough industry, contract manufacturing. Outsource manufacturing for the telecom industry. Historically marches have been very slim which is the reason for concern but they have come through the downturn with a very strong balance sheet. Trades at 10X earnings.

TOP PICK

Never liked it because of 1) low margins and 2) tied into long-term contracts where customer could walk away. Management has done a great job by getting rid of low margin businesses and increase their good businesses. RIM (RIM-T) is about 20% of their revenues. Good diversification in their products.

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Celestica Inc (CLS.TO)