Celestica price target raised to $68 from $61 at TD Securities

TD Securities raised the firm’s price target on Celestica to $68 from $61 and keeps a Buy rating on the shares. While Celestica is appreciated for its success with arterial intelligence compute servers, its communications business is not well understood, the analyst tells investors in a research note. The firm says that as a leading data center networking equipment vendor, the company will be a major beneficiary of continued AI infrastructure investments, ethernet gaining market share, and an increasing mix of 800G equipment. TD increased its 2025 communications revenue estimate by 12% for Celestica due to volume growth, a higher total addressable market, increased AI networking investments, and higher selling prices.