Celestica: Continue Walking The Bull Trail (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Celestica's robust growth is fueled by surging demand for hardware platform solutions, especially networking switches for hyperscalers.
• Recent US-China tariff reductions are a major positive catalyst, likely paving the way for future guidance upgrades, as management had earlier assumed no changes to tariff policies.
• Valuations are at a premium vs peers, but the risk here has eased slightly, as CLS stock today is at a lower premium vs peers than it was months ago.
• Technical analysis signals further upside potential versus the S&P 500.
• Downward consensus capex revisions for hyperscalers is a key risk, but let's not forget that absolute capex growth is still increasing and Celestica is gaining market share.

Read the full article here.