Celestica: New Networking Wins Keep The Revenue Engine Revving (Archive)
Celestica’s AI networking leadership fuels strong growth but elevates valuation risk.
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 CCS segment is rapidly gaining share among hyperscalers, driven by next-gen product launches and strong positioning in AI/ML networking.
- Valuation risk is rising, with CLS trading at a 63% premium to comps, mostly due to multiple expansion rather than earnings growth.
- The trend on the CLS vs SPX500 technical charts remains firmly bullish, with no signs of seller pressure.
- Wall St is downgrading capex estimates of Celestica's key customers, which is another risk indicator to watch for in terms of growth slowdown beyond 1 years' time.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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