Deutsche Bank Downgrades Celestica (CLS) to Hold; Valuation Call After Recent Run

Deutsche Bank downgraded Celestica (NYSE: CLS) from Buy to Hold.

Deutsche analyst said, "CLS’s shares are up 23% over the past 3 months, outperforming both the S&P 500 (+8%), the NASDAQ (+13%), and peers Flextronics (Nasdaq: FLEX) (+13%) and Jabil Circuit (NYSE: JBL) (+11%). We believe the recent performance of CLS’s shares has been driven by an easing in concerns about the company’s RIMM business (19% of revenue) and the company’s solid operating margin performance over past few quarters. We expect revenue growth to remain in the mid-single digits for the company in FY-12 and expect further operating margin improvements to be more difficult to come by."

For an analyst ratings summary and ratings history on Celestica click here. For more ratings news on Celestica click here.

Shares of Celestica closed at $9.08 yesterday.

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