Samik Chatterjee, an analyst from J.P. Morgan, maintained the Buy rating on Celestica. The associated price target was raised to $295.00.
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Samik Chatterjee has given his Buy rating due to a combination of factors that highlight Celestica’s promising growth prospects. One of the key factors is the increased visibility into Celestica’s opportunity with OpenAI, which is expected to be larger and occur sooner than previously anticipated. Recent reports suggest that Broadcom is set to begin mass production of custom ASICs for OpenAI, indicating a significant revenue opportunity for Celestica, particularly in the non-semiconductor content of AI racks.
Additionally, Celestica’s strong relationships with major hyperscalers position it well to capitalize on the growing investments in AI infrastructure, including custom ASIC servers and white box switches. The company’s higher R&D spending compared to peers supports a shift towards higher-margin businesses, enhancing its earnings quality. Consequently, the price target for Celestica has been raised, reflecting the anticipated growth and improved margins, which justify a higher valuation multiple.
In another report released on August 21, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$286.00 price target.