RBC Capital Analyst Gives Celestica a Buy Rating and $225 Price Target

RBC Capital analyst Paul Treiber maintained a Buy rating on Celestica with a price target of $225.00. The company reported a quarterly revenue of $2.65 billion and a net profit of $86.2 million. TipRanks analyst Paul Treiber has a 5-star rating with an average return of 15.1% and a 65.92% success rate.

Celestica Inc. (CLS) reported robust financial results for the second quarter of 2025, with revenue and earnings per share (EPS) exceeding market expectations. The company's strong performance was driven by increased demand in its Communications and Cloud Solutions (CCS) segment and improvements in operating margins. Despite some challenges in the enterprise end market and a projected moderation in the capital equipment business, Celestica raised its guidance and outlook for the year ahead.

Key highlights from Celestica's Q2 2025 earnings include:

- Revenue: $2.89 billion, up 21% year-over-year (YoY), surpassing the high end of the company's guidance.
- Adjusted EPS: $1.39, up 54% YoY, beating the estimated EPS of $1.18.
- Operating Margin: Improved to 9.4% from 5.6% in the previous year.
- Net Income: $211.00 million, up 111.85% YoY.
- Free Cash Flow: $119.90 million, up 86.20% YoY.

Celestica's CEO, Rob Mionis, commented on the strong performance, stating, "We achieved very strong results in the second quarter, with revenue of $2.89 billion and non-GAAP adjusted EPS of $1.39, representing growth of 21% and 54%, respectively, each exceeding the high end of our guidance ranges. This performance was bolstered by strong adjusted operating margin of 7.4%, another new high for the company, demonstrating the strength of our execution."

Analysts remain optimistic about Celestica's prospects. RBC Capital analyst Paul Treiber maintained a Buy rating on Celestica with a price target of $225.00, reflecting the company's strong performance and growth potential. TipRanks analyst Paul Treiber, who has a 5-star rating with an average return of 15.1% and a 65.92% success rate, also underscored the company's impressive earnings and the potential for further growth.

Celestica's stock price has been on a significant upward trajectory, with the company's share price rising 84% so far this year. The company's strong performance and increased guidance have contributed to this growth, and investors are optimistic about the company's future prospects.

References:
[1] https://247wallst.com/investing/2025/07/28/live-will-celestica-soar-after-announcing-q2-earnings-tonight/?prefer_reader_view=1&prefer_safari=1
[2] https://www.theglobeandmail.com/investing/markets/stocks/CLS/pressreleases/33761455/celestica-shines-in-q2-2025-earnings-call/