Celestica (CLS) | News Based Sentiment Analysis

• On September 4, 2025, Celestica reported a strong second quarter, with revenue reaching $2.89 billion – a 21% year-over-year increase – and adjusted EPS of $1.39, exceeding the $1.23 estimate. This impressive performance, highlighted by a 7.4% adjusted operating margin, signaled strong demand and set the stage for a more optimistic outlook.
• Following the strong Q2 results, Celestica significantly raised its full-year 2025 revenue guidance on September 13, 2025, to approximately $11.55 billion, up from $10.85 billion, and anticipates non-GAAP adjusted EPS of $5.50 per share, an increase from $5.00. This upward revision demonstrates increased confidence in the company’s growth, particularly in the AI and advanced connectivity sectors.
• Despite the positive news, Celestica's shares experienced a 4.6% decrease to $242.60 on September 17, 2025, coinciding with a 25 basis point cut to 2.5% by the Bank of Canada. However, trading volume was lower than average, suggesting the dip wasn't a widespread investor reaction.
• Institutional investors continued to show confidence throughout the month. Invst LLC took a $1.07 million stock position on September 14, 2025, and Intech Investment Management LLC took a $3.55 million position on the same day, indicating continued support from larger investors.
• Celestica reached a new 52-week high of $257.79 on September 19, 2025, closing at $248.99 with a volume of 546,275 shares. This peak reflects a surge of 435.43% over the past year, supported by 20.52% revenue growth.
• Analysts maintained a largely positive outlook, with Stifel raising its price target to $230.00 (from $150.00) on September 21, 2025, and Canaccord Genuity raising theirs to C$331.11 (from C$173.83). The consensus rating remains a “Strong Buy” with an average price target of C$338.63.
• Seeking Alpha maintained a “Buy” rating on September 18, 2025, citing strong Q2 FY2025 earnings driven by a 21% year-over-year revenue increase and a 54% increase in adjusted EPS. They also highlighted Celestica as the #1 quant-rated Electronic Manufacturing Services stock.
• BMO Capital Markets identified Celestica as a key supplier for OpenAI's custom servers on September 15, 2025, which utilize Broadcom silicon. This is a positive sign, as Broadcom is collaborating with OpenAI to design AI chips, positioning Celestica within a key growth area.

The Investment Story: September was a strong month for Celestica, marked by impressive Q2 results, increased guidance, and continued institutional support, despite a mid-month stock dip tied to broader economic factors. The company is clearly benefiting from the surge in demand for AI infrastructure.

What It Means for Investors: The positive developments suggest a favorable outlook for Celestica investors, though the stock's substantial gains warrant caution. Continued execution in the AI space and successful navigation of macroeconomic headwinds are key to sustaining this momentum.

Looking Ahead: Investors should watch for Celestica’s Q3 2025 earnings release on October 27, 2025, and the Investor Day on October 28, 2025, for further updates on the company’s performance and outlook. Q3 EPS guidance is $1.370-$1.530.

The Bottom Line: Celestica appears well-positioned to capitalize on the growing demand for AI infrastructure, making it an attractive investment for those seeking exposure to this high-growth market. The company’s strong financial performance and strategic investments suggest a solid foundation for continued success.