Barclays Raises Celestica Inc. (CLS) Price Target to $391, Reiterates Overweight
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On January 30, Barclays raised its price target on Celestica Inc. (NYSE:CLS) to $391 from $359 while reiterating an Overweight rating, following the company’s upward revision to its fiscal 2026 outlook by approximately $1 billion. The analyst characterized the updated guidance as conservative, suggesting there is room for further upward revisions as the year progresses. Barclays’ constructive stance reflects confidence in sustained demand trends and improving earnings visibility, particularly as the company continues to deepen its exposure to high-growth end markets tied to next-generation computing infrastructure.
A day earlier, Celestica Inc. (NYSE:CLS) reported robust fourth-quarter and full-year 2025 results, with Q4 revenue increasing 44% year-over-year to $3.65 billion. Adjusted operating margins expanded meaningfully, and earnings per share improved substantially, contributing to full-year revenue growth of 28% to $12.39 billion and more than doubling GAAP EPS. Supported by accelerating demand for AI-driven data center hardware and enhanced clarity into customer deployment roadmaps, management raised its 2026 guidance to $17.0 billion in revenue and $8.75 in adjusted EPS. The company also announced plans to increase capital expenditures to $1 billion in 2026 to support long-term AI infrastructure programs, with funding expected to come from operating cash flow. This combination of strong execution, expanding margins, and self-funded growth investments reinforces the view that Celestica is well-positioned to capitalize on structural AI spending through 2027 and beyond.
Celestica Inc. (NYSE:CLS), founded in 1994 and headquartered in Toronto, is a multinational electronics manufacturing services provider offering design, engineering, manufacturing, and supply chain solutions. Operating across more than 15 countries, it serves sectors including artificial intelligence, aerospace, defense, health technology, and industrial markets, with a focus on complex, high-growth programs and data center infrastructure.
While we acknowledge the potential of CLS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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