CLS:CC - Celestica's AI Pivot Will Continue To Fuel Its 300% Risky Rally

2024-07-11 08:36:23 ET

Summary

• Celestica has seen significant growth due to increased demand for data center infrastructure components, surpassing Nvidia's stock performance.
• The company's success is attributed to its full stack of supply chain and manufacturing services, catering to top technology customers like Meta Platforms and Amazon.
• Despite some risks related to order volatility and inventory distortions, Celestica's valuation indicates strong upside potential, making it a Buy recommendation.
• With a 20x forward P/E, valuation points to at least 26% upside in Celestica from current levels.

Investment Thesis

There are a few handful of companies that are able to match up to the performance of Nvidia ( NVDA ) since technology companies opened their books of robust business on the back of one of the largest investments in data center-focused capital investments....

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