TSX:CLS - Post Discussion
Post by
retiredcf on Oct 25, 2024 9:18am
Canaccord
Canaccord Genuity’s Robert Young raised his Celestica Inc. target to US$77 from US$80 with a “buy” rating. “Celestica reported another beat and raise quarter (FQ3) with all metrics ahead of expectations,” said Mr. Young. “The company also held a virtual investor meeting alongside the conference call, where it provided access to ATS and CCS business heads and its SVP responsible for hyperscaler revenue to discuss strategy and end markets. Celestica raised its F2024 guidance once again and provided F2025 guidance that was ahead of consensus. The outlook for 2025, underpinned by 15-per-cent EPS growth, appears conservative in our view, with a likelihood for upside opportunity as hyperscaler demand in H2/25 becomes clearer. Celestica announced multiple key wins alongside the quarter, including a 1.6T switching program with its largest hyperscaler customer and a new strategic relationship with Groq, an AI inference company, where Celestica will support Groq in manufacturing AI/ML servers and full rack solutions. We have revised our estimates to align with F24 and F25 guidance.”
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