Celestica Inc. (NYSE:CLS) is one of the 13 Most Profitable Growth Stocks to Buy Right Now. TD Cowen analyst John Shao maintained his Hold rating and $330 price target on Celestica Inc. on March 4. Shares of CLS have come under pressure due to concerns around AI-related disruptions, but on February 20, BNP Paribas analyst Karl Ackerman said the recent pullback presents a potential buying opportunity for investors. The firm highlighted the company’s strong engineering expertise and original design and manufacturing capabilities. These strengths have led to a sharp increase in customer orders in 2025. The momentum could continue into 2026.
New orders typically take about three years to translate into meaningful revenue. As a result, Celestica’s planned $1 billion in capital spending this year is expected to support growth from 2027 through 2029. Additional growth drivers, according to the analyst, include potential ramp-ups in Google’s tensor processing unit programs, expansion among digital native customers, large-scale 1.6 trillion networking switch deployments by hyperscalers, and growing AI-driven data center investment. The firm expects these factors to drive strong revenue growth and margin expansion through 2028.
Photo from Marvell website
Following a meeting with Celestica Inc.’s CFO and investor relations team, BNP analyst Karl Ackerman shared his views:
We believe Celestica’s growing capacity and engineering capabilities widens the company’s [Original Design Manufacturer] networking opportunity and margin expansion potential. CLS remains a top idea.
Celestica Inc. operates as a supply chain solutions provider across North America, Asia, and globally. The company operates in the Connectivity & Cloud Solutions and Advanced Technology Solutions segments. It provides a wide range of product manufacturing and related supply chain services, as well as hardware platform solutions and hardware and software design solutions and services.
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