Celestica (CLS) PT Raised to $410 at Aletheia Capital

Aletheia Capital analyst Skye Chen raised the price target on Celestica (NYSE: CLS) to $410.00 (from $330.00) while maintaining a Buy rating.

The analyst comments "We revise our TP to $410 (25x FY27E EPS) from $330, reflecting upward revision and tripling of EPS between FY25E and FY27E. The first driver is higher Zebrafish module ASPs following the confirmation that Zebrafish is a parallel product line to Sunfish rather than a lower‑spec inference SKU. This lifts enterprise‑segment revenue by about 30% as CLS maintains a 75–80% share of Google’s TPU module builds. Secondly, we upgrade the communication segment forecasts to reflect that the next-generation AI platforms (GB300, Vera‑Rubin, TPU Ghostfish and Trainium 3) will accelerate 800 Gbps switch deployments CY25E to CY28E. Notably, this does not incorporate the potential upside from Apple’s adoption of Google Gemini for Siri and other cloud technology. Lastly, we expect other new businesses, i.e., OpenAI module and ODM rack program to remain on track, contributing a quarter of CLS’s earnings in FT27E."

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