Goldman Sachs raised the firm’s price target on Celestica (CLS) to $475 from $430 and keeps a Buy rating on the shares. The company beat on earnings, but the revenue shortfall was driven by a miss in Enterprise due to component shortages in memory, power supplies, and optics, the analyst tells investors in a research note. Goldman adds that it views the stock as attractively priced at about 18-times near-term expected earnings, but investor pushback will likely be on gross margin pressures driven by the mixed shift to TPU servers, the 1.6T transition, and deceleration in communications revenue growth.
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