UBS upgrades Celestica shares on strong AI-driven demand for Ethernet switching and AI compute, raising its price target by $20.
UBS upgraded Celestica (CLS) to Buy from Neutral and increased its price target to $430 from $410, citing robust AI-driven demand for Ethernet switching and AI/ML compute. The move reflects growing confidence in the company’s positioning in high-growth markets.
Prior to the upgrade, Celestica’s shares had been trading near the previous target of $410. The new target represents a potential upside of nearly 5% from recent levels, aligning with broader sector trends in AI infrastructure.
Shares of Celestica rose fractionally in premarket trading following the announcement, signaling cautious investor optimism.