Stifel Sees More Upside for Celestica (CLS) as AI Demand Accelerates

Celestica Inc. (NYSE:CLS) is one of the AI Stocks Making Waves on Wall Street. On July 29, Stifel analyst Ruben Roy raised the price target on the stock to $230.00 (from $150.00) while maintaining a “Buy” rating.

The rating affirmation follows Celestica’s better-than-expected F2Q25 results and raised guidance for FY26. The company continues to demonstrate robust execution on the back of AI-driven demand acceleration.

“CLS reported better-than-expected F2Q25 results, guided F3Q25 above consensus, and raised FY26 guidance. As such, we are raising our forward estimates, increasing our price target to $230, and reiterating our Buy rating as CLS continues to demonstrate strong execution amid AI-driven demand acceleration. F2Q25 sales of $2.89bn increased 9% sequentially and 21% y/y, with the CCS and ATS segments exhibiting 28% and 7% y/y growth, respectively (both exceeding management’s prior expectations).”

“Within CCS, management highlighted strong HPS networking switch demand, and expects this strength to persist as customers continue to transition towards 800G solutions in F2H25. We expect CLS’ AI-driven momentum to drive continued growth, with LT upside potential associated with early-stage 1.6T programs and digital cloud native opportunities, and reiterate our Buy rating.”

Celestica Inc., a provider of supply chain solutions, operates through two segments, Advanced Technology Solutions, and Connectivity and Cloud Solutions.

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