CIBC Maintains Outperformer on Celestica (CLS) Amid AI Growth

Celestica Inc. (NYSE:CLS) ranks among the most profitable Canadian Stocks to buy now. On March 11, CIBC reduced its price target for Celestica Inc. (NYSE:CLS) from $400 to $360 while retaining an Outperformer rating for the company.

The firm stated that the decrease indicates a lower-multiple environment rather than a decline in fundamentals.

According to CIBC’s prevailing scenario, the stock suggests a 15% increase in revenue above 2027 projections. The upside scenario assumes that the AI infrastructure cycle will continue, resulting in revenue that is 30% higher than estimated for 2027. Meanwhile, the downside scenario represents a significant risk if AI capex peaks in 2027.

CIBC further stated that, given increased visibility into Google, Meta, Amazon, and OpenAI’s capital expenditure plans, it continues to believe that Celestica’s guidance and estimates for Q1 and 2026 remain somewhat conservative.

Celestica Inc. (NYSE:CLS), together with its subsidiaries, provides supply chain solutions in Asia, North America, and internationally. It operates through two segments: Advanced Technology Solutions and Connectivity & Cloud Solutions.

While we acknowledge the potential of CLS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Disclosure: None. Follow Insider Monkey on Google News.

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