Celestica upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital analyst Maxim Matushansky upgraded Celestica to Outperform from Sector Perform with a price target of $22, up from $14, following the “strong” Q2 results. While longer-term concerns around the electronics manufacturing industry and Celestica’s potential long-term growth rate and margins remain, the secular growth in hyperscaler spending and potential for further guidance raises “provide a catalyst for the valuation discount compared to peers to close,” the analyst tells investors in a research note. The firm says Celestica is “firing on all cylinders” with an improved stock risk/reward.