Celestica upgraded to Buy from Hold at Stifel

Stifel upgraded Celestica to Buy from Hold with an unchanged price target of $58. The shares are down down 35% since July 16 on concerns of slowing artificial intelligence investments from hyperscale customers following key supplier earnings reports, the analyst tells investors in a research note. However, the firm believe is fiscal 2025 earnings per share estimate of $4.00 “remains entirely achievable” and already reflects an expected decline in server sales due to a technology transition at top customer Google. This should be more than offset by growth in Celestica’s communications segment with the expected 800-G switch investment cycle, contends Stifel. The firm says the shares remain compelling at current levels.