Celestica (CLS) provides global supply chain solutions to OEMs and service providers, and it has long been a favorite among analysts and investors. It consistently delivers strong quarterly performances, exceeding EPS expectations for the last nine quarters. TipRanks’ Smart Score even rates it a perfect 10, indicating strong potential for outperformance. Despite this, the stock has plummeted 14% in the past five days, mainly due to the unfolding trade war, in which Celestica has become one of the more significant casualties.
Let’s explore the factors behind this steep decline:
Insider Selling Shakes Confidence
A wave of insider selling following Celestica’s latest Q4 earnings has raised concerns among investors. On February 6, 2025, CEO Robert Mionis sold 441,325 shares worth nearly $54 million, a move that was followed by other top executives, sparking market skepticism. This uncertainty was elevated by Celestica’s struggles in a volatile market. On February 28, 2025, its stock dropped by 0.76%, even as the broader market saw gains. Such fluctuations only heighten investor unease, prompting some to offload shares to mitigate risk.
This brings us to the main factor, as Celestica has been one of the premier casualties of the unfolding trade war between the U.S. and Canada. The confirmed U.S. tariffs have sent giant ripples across the global markets. On March 4, 2025, Canada’s TSX index dropped nearly 500 points, its worst fall of the year. U.S. markets also suffered, with the Dow Jones (DJIA) losing 662 points and the S&P 500 (SPX) shedding 97 points. The tariffs hit various industries hard, including technology.
With 70% of its production in Asia, Celestica faces potential challenges if further import tariffs emerge. This has fueled concerns about supply chain costs and profit margins.
TipRanks Smart Score and Market Sentiment
According to TipRanks, Celestica boasts a perfect Smart Score of 10, meaning an outperform prospect for the near term. Celestica’s stock is set for a 63.49% upside with a $147.50 price target. Blogger sentiment is 93%, far above the sector average. Despite insider sales, crowd and news sentiment remain bullish, reflecting strong confidence in the company’s future.
The Road Ahead for Celestica
Despite the recent turbulence, Celestica has raised its full-year outlook, projecting revenue of $10.7 billion and non-GAAP EPS of $4.75. The company remains strong, but short-term uncertainties cloud its stock performance. Investors now face a key question: Is this a dip buying opportunity or a sign of more trouble ahead?
What Is the Price Target for CLS?
Turning to Wall Street, Celestica is rated as a Strong Buy based on eight analysts’ ratings. The average price target for CLS stock is $147.50, implying a 63.49% upside potential.
