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Barclays Raises Celestica Inc. (CLS) Price Target to $391, Reiterates Overweight

We recently published an article titled 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.

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, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CLS and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 8 Up and Coming Streaming Companies and Services and 9 High Growth Canadian Stocks to Buy

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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