Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 24 Nov, 25 | CLS | Buy | USD 280.06 | USD 295.0 | USD 310.0 | Same day | Closed |
9.16%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Celestica Inc. provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides hardware platform solutions, which includes development of infrastructure platforms, and hardware and software design solutions and services which is used as-is or customized for specific applications; and management of program including design and supply chain, manufacturing, and after-market support, including IT asset disposition and asset management services. The company offers its products and services to original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies in aerospace and defense, industrial, HealthTech, capital equipment, and communication and enterprise markets. Celestica Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.
Significant EPS Expansion: GAAP EPS increased sharply from USD 0.75 to USD 2.31, representing a 208% year-over-year rise, while non-GAAP adjusted EPS improved 52%, from USD 1.04 to USD 1.58
Strong Revenue Acceleration: Celestica achieved a 28% increase in total revenue, rising from USD 2.50 billion to USD 3.19 billion, driven primarily by exceptional performance in the Communications end market
Enterprise Market Contraction: Within the CCS segment, Enterprise revenue decreased 24% year-over-year, dropping to USD 470 million, due to ongoing weakness in server and storage demand
ATS Revenue Decline: The Advanced Technology Solutions (ATS) segment experienced a 4% revenue decline, falling from last year’s level to USD 781 million, reflecting softer demand across certain industrial and aerospace markets
Celestica faces material investment risk due to high customer and segment concentration, where a downturn or demand shift among a small number of large hyperscaler and communications customers could significantly affect revenue and profitability
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 280.06 | 250.0 | 295.0 | 310.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Performance: In the third quarter of fiscal 2025, Celestica reported a significant increase in consolidated revenue, reaching USD 3.19 billion compared to USD 2.50 billion in Q3 FY2024, representing 28% year-over-year growth. This expansion was primarily driven by robust demand in the Connectivity & Cloud Solutions (CCS) segment, particularly within the Communications end market. The company outperformed its revenue guidance due to higher-than-anticipated customer demand.
Profitability and Margin Expansion: Celestica delivered strong profitability improvements in Q3 FY2025. GAAP earnings from operations rose to 10.2% of revenue, up from 5.5% in Q3 FY2024. Adjusted operating margin (non-GAAP) also increased to 7.6%, compared to 6.8% in the prior-year quarter, reflecting improved operating leverage and effective cost management. This performance demonstrates continued execution strength across the organization.
Earnings Growth: The company recorded substantial growth in both GAAP and non-GAAP earnings. GAAP earnings per share increased to USD 2.31, compared to USD 0.75 in Q3 FY2024, largely supported by enhanced operating profitability and favorable total return swap adjustments. Non-GAAP adjusted EPS reached USD 1.58, up from USD 1.04, marking a 52% year-over-year increase. These results exceeded Celestica’s guidance range, underscoring strengthened financial performance.
Segment-Level Performance: Operationally, the CCS segment was the key engine of growth. CCS revenue increased by 43% year-over-year to USD 2.41 billion, with Communications revenue specifically expanding 82% compared to Q3 FY2024. The segment achieved a margin of 8.3%, an improvement from 7.6% in Q3 FY2024. Conversely, the Advanced Technology Solutions (ATS) segment reported a 4% revenue decline, reaching USD 0.78 billion, though segment margin still improved modestly to 5.5%, up from 4.9% in the prior year.
Working Capital and Operational Efficiency: Operational efficiencies continued to strengthen, as reflected in improvements in working capital metrics. Inventory turns increased to 5.6x, up 0.7x year-over-year, and days in inventory declined significantly from 75 days in Q3 FY2024 to 65 days in Q3 FY2025 . Cash cycle days also improved to 65, compared to 66 in the previous year, demonstrating enhanced supply chain and inventory management.
Cash Flow and Liquidity: Celestica maintained a strong liquidity position with USD 306 million in cash and total liquidity of approximately USD 1.1 billion as of September 30, 2025 . Capital expenditures were well-controlled at USD 37 million, representing 1.2% of revenue, consistent with disciplined capital allocation. Free cash flow generation remained stable, supported by solid operating cash inflows.
Strategic Outlook and Shareholder Initiatives: Management raised its full-year 2025 revenue outlook to USD 12.2 billion and updated adjusted EPS expectations to USD 5.90, reflecting confidence in sustained demand, especially from AI-related data center investments. Additionally, the company announced its intention to file for a new Normal Course Issuer Bid (NCIB) to repurchase up to 5% of its public float, reinforcing its commitment to enhancing shareholder value.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Celestica Inc (NYSE: CLS) at the closing market price of USD 280.06, as on Nov 21, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Electronic Components
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| CLS Celestica Inc. |
9.75 3.42% | 294.86 | 35.90 | 25.19 | 1.49 | 7.24 | 1.49 | 19.41 |
| APH Amphenol Corporation |
2.01 1.39% | 146.94 | 41.49 | 32.79 | 6.15 | 9.40 | 6.51 | 26.52 |
| HNHPF Hon Hai Precision Industry Co Ltd ADR |
-0.43 3.09% | 13.50 | 10.86 | 8.47 | 0.0073 | 0.92 | 0.0057 | 0.11 |
| TEL TE Connectivity Ltd |
-0.84 0.37% | 226.29 | 23.48 | 18.83 | 2.68 | 3.73 | 2.85 | 14.55 |
| MRAAY Murata Manufacturing Inc |
0.58 5.86% | 10.47 | 22.29 | 13.99 | 0.02 | 2.07 | 0.02 | 0.08 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on November 24, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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