2024-03-19 13:30:00 ET
Summary
- Celestica is a low-margin IT solutions provider in the electronic manufacturing services industry.
- The company is expanding its capacity in Thailand and Malaysia to meet strong demand from customers in the communications and enterprise market.
- Celestica's stock surge may depend on the expansion of the AI hype cycle and its ability to outperform in the market.
- I explain why CLS' relatively attractive valuation supports a valuation re-rating as AI investors look for more appealing "hidden gem" plays.
- With CLS potentially approaching a drop zone, I view pullbacks as golden opportunities to buy more.
Celestica Inc. ( CLS ) is a high-performing IT solutions provider in the electronic manufacturing services industry. Although it's categorized within the tech sector ( XLK ), Celestica is a relatively low-margin service provider, given the nature of its business model. Investors keen to learn more about its business can consider looking through Celestica's company presentation prepared in 2023....
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For further details see:
Celestica: This Is A Hidden Gem For AI Investors