Research Alert: Cls Downgraded To Buy On Multiple Reversal: Tp Cad504
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We downgraded Celestica from Strong Buy to Buy on valuation as shares and valuation multiples have risen ~25% in a month. We raise our target price to CAD504 from CAD444 on an earnings multiple of 30.0x (+2.0x) and EBITDA multiple of 24.0x (+4.0x) as the AI infrastructure space has rebounded and digested the turmoil in the Middle East. We continue to believe CLS is best-in-class, and we remain confident in its positioning with hyperscalers and do not foresee an AI infrastructure slowdown. Q4 and FY earnings revealed a strong double beat, with FY 26 guidance raised and plans to increase manufacturing on $1B capex spend (~5x increase Y/Y) and an additional hyperscaler win. We view the results as bullish and continue to like the company's execution amid the AI megatrend.