Celestica initiated with a Buy at BofA

BofA initiated coverage of Celestica (CLS) with a Buy rating and $400 price target As a “leading provider of white-box switches,” Celestica will be a beneficiary of an AI-driven upgrade boom for high-speed data center switches as well as strong growth in custom ASIC accelerated servers, the analyst tells investors. FY27 should be a strong year with many new programs ramping, says the analyst, who expects continued market share gains.