Celestica resumed with a Buy at Stifel

Stifel analyst Ruben Roy resumed coverage of Celestica (CLS) with a Buy rating and $140 price target Celestica continues to improve its positioning and exposure to hyperscalers, which the firm expects to drive growth of the company’s Hardware Platform Solutions business, the analyst tells investors. While the multiple has re-rated as Celestica has been identified as a beneficiary of AI infrastructure spending the firm believes recent new HPS customer program wins would indicate that Celestica continues to execute against its longer-term opportunity, adding that the firm also expects “gradual stabilization and improvement” in the company’s Advanced Technology Solutions segment.