RBC Capital Remains a Buy on Celestica (CLS)

1 week ago 6

Talha Qureshi

Wed, January 28, 2026 astatine 11:17 AM CST 2 min read

Celestica Inc. (NYSE:CLS) is 1 of the High-Flying Tech Stocks to Buy. On January 23, RBC Capital reiterated an Outperform standing connected the banal with a $400 terms target. Earlier, connected January 20, Aletheia Capital besides reiterated a Buy standing connected Celestica Inc. (NYSE:CLS) and raised the terms people from $330 to $410. Recently, connected January 22, DigiTimes study stated that Inventec, 1 of the competitors of Celestica Inc., is expected to grow its relation successful Google Tensor Processing Unit manufacturing and ramp AI server accumulation successful 2026. The quality caused the banal terms of CLS to autumn astir 11%. Analysts astatine RBC Capital presumption the quality and the marketplace absorption to beryllium excessive and reaffirmed that the institution remains attractively placed successful a high-demand market. The steadfast added that Celestica Inc. (NYSE:CLS) has maintained a bulk of TPU assembly volumes driven by the company’s precocious accumulation yields.

The steadfast added that contention and imaginable marketplace stock shifts airs risks to Celestica’s growth. However, they spot the institution to beryllium well-positioned to capitalize connected the increasing request from hyperscalers into 2027. Similarly, Aletheia Capital noted higher mean selling prices for Google’s Zebrafish modules and confirmed that it is simply a parallel merchandise enactment to Sunfish, not a cheaper inference version. The steadfast expects this higher mean selling terms to boost the company’s endeavor gross by astir 30% and volition besides assistance support the 75% to 80% stock of Google’s TPU module production. Celestica Inc. (NYSE:CLS) is simply a planetary electronics manufacturing services (EMS) institution that is based successful Canada. The institution specializes successful design, manufacturing, hardware platform, and proviso concatenation solutions to present end-to-end merchandise lifecycle solutions for assorted industries, including technology, aerospace, industrial, and healthcare. While we admit the imaginable of CLS arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock. READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.