By Adriano Marchese
Celestica shares traded higher Friday after CIBC analysts raised its targets for the stock on the back of a promising outlook, pushing it beyond the level before the DeepSeek-inspired drop earlier in the week.
Shares trading in Toronto rose nearly 15% to 189.79 Canadian dollars ($130.96). In New York, shares traded 15% higher at $130.92.
CIBC analyst Todd Coupland upgraded the stock's rating to outperformer from neutral and raised the target price to $150 from a previous $68 on the back of more certainty of performance from the business and robust demand over the next two years.
In a research note, the analyst said Celestica's improved visibility is confirmed by better-than-expected results in the fourth quarter that saw revenue and earnings per share beat consensus estimates by 1% and 6%, respectively.
"The company expects demand and business momentum to remain strong through 2026," Coupland said.
The analyst said the revised price target also takes into consideration an expanded networking peer set of Arista Networks, Accton, Cisco, and Pure Storage for the Communications unit.
Friday's stock rise brought the price beyond levels seen right before a 28% drop on Monday which was stoked by fears that China's low-cost AI model, DeepSeek, could weaken demand for data centers and energy. The stock has been climbing throughout the week before surpassing the previous Friday's closing price of C$174.68.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
January 31, 2025 11:00 ET (16:00 GMT)
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