-- CIBC Capital Markets raised its price target on Celestica Inc. (CLS.TO, CLS) to US$425 from US$360.
Analyst Todd Coupland maintained an Outperformer rating on shares of the Canadian electronics manufacturing services company ahead of its fiscal Q1 results on April 27.
"We continue to view management's guidance - and current FactSet consensus for Q1 and 2026 - as conservative, reflecting improved visibility into capex plans at key hyperscalers (GOOGL, META, AMZN) and OpenAI," Coupland said in a note to clients.
"Since March 2022, results have exceeded consensus by an average of ~5% on revenue and ~10% on EPS," the analyst said. "Notably, the 2025 results were ~20% higher than the initial Outlook provided in October 2024."
"Recent announcements suggest this trend has continued and is pulling forward customer demand from 2027 into 2026, supporting our positive thesis," Coupland said.
"We raised our target multiples for Celestica to reflect improved visibility to upward revisions in AI datacentre capex spending from significantly improved model performance."