BofA Securities initiates coverage of Celestica with a buy recommendation

Tenbagger2024 · 2026-01-29T18:59:21.543672Z

$CLS My dears, With today's price reduction, let's listen to the analysts. 🙈🙈 (No investment recommendation) 📰 Key messages of the article BofA Securities initiates coverage for Celestica Recommendation: Buy Target price: 400 USD Current price according to the article: 333.17 USD Performance 2025: +252 % return according to InvestingPro Reason for the buy recommendation Celestica is regarded as leading provider of white box switches. Benefits strongly from the AI-driven upgrade cycle in data centers: 400G, 800G and 1.6T switching Growth in ASIC-accelerated servers BofA expects further market share gains in these segments. Particularly strong financial year 2027 expected: Many new programs to be launched Profit estimates above consensus Valuation & key figures Target price based on: 32× estimated EPS 2027 of USD 12.36 Implied PEG 0.7 Current PEG according to article: 0,48 Despite a P/E ratio of 53.91, BofA considers the share undervaluedas the earnings growth is extremely high (CAGR 47% until 2027). Further analyst opinions Aletheia Capital: Price target of 330 → 410 USD increased Expected Tripling of EPS 2025-2027 BMO Capital: Confirmed Outperform Target price 370 USD Expects strong Q4 2025, especially in the area of Tensor Processing Units Celestica is one of the Top Tech Picks 2026 from BMO

$CLS (+4 %)

My dears,

With today's price reduction, let's listen to the analysts. 🙈🙈

(No investment recommendation)

📰 Key messages of the article

BofA Securities initiates coverage for Celestica

Recommendation:
Buy
Target price:
400 USD
Current price according to the article: 333.17 USD
Performance 2025: +252 % return according to InvestingPro

Reason for the buy recommendation

Celestica is regarded as leading provider of white box switches.
Benefits strongly from the AI-driven upgrade cycle in data centers:
400G, 800G and 1.6T switching
Growth in ASIC-accelerated servers
BofA expects further market share gains in these segments.
Particularly strong financial year 2027 expected:
Many new programs to be launched
Profit estimates above consensus

Valuation & key figures

Target price based on:
32× estimated EPS 2027 of USD 12.36
Implied PEG 0.7
Current PEG according to article: 0,48
Despite a P/E ratio of 53.91, BofA considers the share undervaluedas the earnings growth is extremely high (CAGR 47% until 2027).

Further analyst opinions

Aletheia Capital:
Price target of 330 → 410 USD increased
Expected Tripling of EPS 2025-2027
BMO Capital:
Confirmed Outperform
Target price 370 USD
Expects strong Q4 2025, especially in the area of Tensor Processing Units
Celestica is one of the Top Tech Picks 2026 from BMO

Patrick Schäfer@Hotte1909

I also put 10 pieces in my basket 😉

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Tenbagger2024@Tenbagger2024

@Hotte1909
Good value. If it still goes down, I might buy again. The figures were good and the forecast was raised

Dividendenopi👴@Dividendenopi

Will be on the watch list for the two remaining potential candidates for the tenbagger depot or as a replacement candidate

@Dividendenopi
Perhaps now is a good opportunity

@Tenbagger2024 wait and see tomorrow, as you know friday is buyday 😇 I also need to make a few shifts in the dividend portfolio after the annual evaluation. If that fits tomorrow, then that takes priority, it reads interesting for now, I would like to look a little deeper.

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@Dividendenopi
Exactly. Good idea. Just don't fall into fomo. We'll get it right. I'm your fan

Max@Divident_e

My dear. Don't trust any statistics that you haven't falsified yourself