Bernstein maintains Celestica at Outperform, lowers price target to $340 from $495

Celestica (CLS) rose 9.2% following strong Q3 results and optimistic guidance. The company reported $5.83B revenue and $3.30 adjusted EPS, exceeding expectations. Management forecasted Q4 revenue of $6.275B-$6.575B and 2027 revenue of $40B, driven by AI infrastructure demand. A share repurchase program also supported sentiment.

Celestica's stock rose 5.4% to CA$335.87 after Q4 2026 revenue guidance of $6.275B-$6.575B and reaffirmed EPS range of $3.37-$3.57. Q3 2026 revenue was $5.83B, up 83% YoY, with adjusted EPS of $3.30. Institutional investors acquired shares, and analysts issued bullish notes. The S&P 500 and NASDAQ also advanced, supporting the rally.

Celestica reported Q3 FY2026 revenue of $5.83B, up 82.5% YoY, and raised 2027 outlook with $40B revenue forecast. Growth driven by AI racks and networking products, with capital spending and inventory levels increasing. Forward P/E ratio has declined to 14.9x.

Celestica Inc. (CLS) raised its 2026 outlook to $21B revenue and $11.55 EPS, with 2027 guidance at $40B revenue and $21.50 EPS. The company's growth is driven by AI and Ethernet networking segments, with management's conservative guidance potentially understating future performance, according to an analyst.

Citi analyst Atif Malik raised Celestica's (CLS) price target to $436 from $415, citing strong Q3 results and AI-driven demand. Q3 revenue was $5.83B, up 83% YoY, with adjusted EPS at $3.30. The company raised its 2026 outlook to $21B revenue and $11.55 EPS, and expects 2027 revenue of $40B and $21.50 EPS, according to Malik.

Celestica Inc. (NYSE: CLS, TSX: CLS) received approval from the TSX to repurchase up to 3,132,127 common shares, or 2.5% of its public float, through a Normal Course Issuer Bid. The bid, starting November 3, 2026, will be funded by cash or debt and shares will be cancelled. Purchases will be made on TSX, NYSE, and other exchanges, with daily limits. The company previously repurchased 205,184 shares at an average price of US$271.75.