Celestica (CLS) delivered "solid" Q2 results, and its valuation is increasingly attractive, RBC Capital Markets analysts said in a Tuesday note.
The company's outlook for 2026 and 2027 reflects the ramp of the OpenAI and AMD Helios programs, scaling of 800G switch programs, sustained stronger growth in its Advanced Technology Solutions segment, and continued momentum in its artificial intelligence program, analysts said.
"Celestica is seeing market share gains due to strong delivery execution and synergies between its design and manufacturing," RBC said.
Analysts said that due to capacity constraints, customers are ordering materials a year in advance, giving Celestica multi-year visibility from customers out as far as 2029 in some cases.
RBC retained an outperform rating on the stock and increased its price target to $450 from $440.
Price: $326.50, Change: $-23.71, Percent Change: -6.77%