Update shared on 15 Dec 2025
Analysts have raised their price target on Celestica, citing a slightly higher assumed discount rate and marginally stronger long term revenue growth expectations. Together, these factors support a modest increase in the company’s projected fair value, now effectively unchanged at about $570.00 per share but with a richer future earnings multiple embedded in their models.
What's in the News
- Celestica introduced the SD6300 ultra dense JBOD storage platform, described by TRENDFOCUS as the industry's highest density and most compact ultra dense JBOD, targeting AI data growth and hyperscale data centers (Key Developments).
- The Board of Directors authorized a new share buyback plan on October 30, 2025, supporting continued capital returns to shareholders (Key Developments).
- Celestica announced a normal course issuer bid to repurchase up to 5,722,527 shares, or 4.97% of its subordinate voting share capital, with repurchased shares to be cancelled (Key Developments).
- Management raised 2025 revenue guidance to $12.2 billion, up from $11.55 billion, and issued new guidance calling for $16.0 billion in revenue in 2026, alongside fourth quarter 2025 revenue guidance of $3.325 billion to $3.575 billion (Key Developments).
- Celestica launched new 1.6TbE DS6000 and DS6001 data center switches based on Broadcom Tomahawk 6, doubling switching capacity compared with its prior 800G solutions and targeting AI and high bandwidth workloads (Key Developments).
Valuation Changes
- Fair Value: Remains effectively unchanged at approximately CA$569.94 per share, indicating no material shift in intrinsic value estimates.
- Discount Rate: Has risen slightly from 7.46 percent to about 7.47 percent, reflecting a marginally higher assumed cost of capital.
- Revenue Growth: Has increased slightly from roughly 29.67 percent to 29.68 percent, signaling a modestly stronger long term growth outlook.
- Net Profit Margin: Has edged down very slightly from about 6.52 percent to 6.52 percent, implying virtually no change in long run profitability assumptions.
- Future P/E: Has risen moderately from about 35.2x to 35.9x, suggesting a somewhat richer valuation multiple applied to future earnings.
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