Celestica: The Market Just Started To Agree, And Q2 Isn't Priced Yet

Celestica is upgraded to Buy, with improved 2027 revenue visibility and recent valuation corrections presenting an attractive entry ahead of Q2.

Q1 established a ~$25.5b revenue floor for 2027, covering ~95% of expectations, with further upside possible from new program wins.

CLS benefits from AI infrastructure tailwinds, resolved component constraints, and a strong track record of guidance raises, supporting confidence in H2 and 2027 growth.

Risks include concentrated customer exposure, structurally capped margins, and the need for H2 acceleration, but supply-side improvements and lower forward PE (~30x) enhance the risk/reward.

In February I had rated Celestica ( CLS ) a Hold , primarily because I was awaiting more clarity on sustained growth in 2027.

Since then, the stock is up by ~21%, with a ~10% rally on July 21st, 2026, potentially due to