Canaccord analyst Robert Young believes Celestica is at the beginning of a more aggressive phase of growth buoyed by an under-levered balance sheet, which could be set to work in 2017. The analyst expects double digit growth as well as improved margins growth. Young reiterated his Buy rating and raised his price target to $16.25 from $14.25 on Celestica shares.

Stifel analyst Matthew Sheerin raised the firm's price target on Celestica to $48 from $36 and keeps a Hold rating on the shares. The firm is raising estimates following what it calls "another strong beat-and-raise," noting that hyperscale cloud customers now account for nearly 40% of revenue. Celestica raised its FY24 sales and EPS targets "significantly" on expectations of continued demand for AI servers as well demand for 400- and 800-G switches, noted the analyst.

CIBC downgraded Celestica to Neutral from Outperformer with a price target of $49, up from $41. The company's Q1 results and outlook for Q2 and 2024 "were excellent" as it continues to benefit from compute capacity demand from hyperscalers related to generative artificial intelligence, the analyst tells investors in a research note. However, a deceleration in its enterprise segment due to customer demand shifting to its communications segment "raises a new risk factor," says CIBC. The firm believes it increases the possibility of slowing company growth in revenue and earnings. As a result, it expects lower growth in revenue and in earnings for the second half of 2024 and for 2025.

Raises FY24 revenue view to $9.1B from $8.5B or more, consensus $8.79B.

Reports Q1 revenue $2.21B, consensus $2.10B. "We are pleased with our strong start to the year, delivering revenue growth of 20% in Q1 2024 compared to the prior-year period, and continued non-IFRS operating margin* expansion. Our solid performance was reflected in revenue and non-IFRS adjusted EPS* each in excess of the high end of our guidance ranges," said Rob Mionis, CEO. "We continue to see healthy demand across a number of our major customers, which provides us with the confidence to raise our full year 2024 outlook. We continue to stay focused on solid execution for our customers, and delivering on our strategic priorities and financial targets."