TD Cowen Maintains Hold Rating and $330 Price Target On Celestica (CLS) Stock

Celestica Inc. (NYSE:CLS) is one of the 13 Most Profitable Growth Stocks to Buy Right Now. TD Cowen analyst John Shao maintained his Hold rating and $330 price target on Celestica Inc. (NYSE:CLS) on March 4. Shares of CLS have come under pressure due to concerns around AI-related disruptions, but on February 20, BNP Paribas analyst Karl Ackerman said the recent pullback presents a potential buying opportunity for investors. The firm highlighted the company’s strong engineering expertise and original design and manufacturing capabilities. These strengths have led to a sharp increase in customer orders in 2025. The momentum could continue into 2026.

New orders typically take about three years to translate into meaningful revenue. As a result, Celestica’s (NYSE:CLS) planned $1 billion in capital spending this year is expected to support growth from 2027 through 2029. Additional growth drivers, according to the analyst, include potential ramp-ups in Google’s tensor processing unit programs, expansion among digital native customers, large-scale 1.6 trillion networking switch deployments by hyperscalers, and growing AI-driven data center investment. The firm expects these factors to drive strong revenue growth and margin expansion through 2028.

Following a meeting with Celestica Inc.’s (NYSE:CLS) CFO and investor relations team, BNP analyst Karl Ackerman shared his views:

We believe Celestica’s growing capacity and engineering capabilities widens the company’s [Original Design Manufacturer] networking opportunity and margin expansion potential. CLS remains a top idea.

Celestica Inc. (NYSE:CLS) operates as a supply chain solutions provider across North America, Asia, and globally. The company operates in the Connectivity & Cloud Solutions and Advanced Technology Solutions segments. It provides a wide range of product manufacturing and related supply chain services, as well as hardware platform solutions and hardware and software design solutions and services.

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.