Celestica (CLS) Price Target Raised to $370 at BMO Following Earnings Beat

Celestica Inc. (NYSE:CLS) is one of the AI Stocks on the Market’s Radar. On October 29, BMO Capital raised the firm’s price target the stock to $370 from $300 and kept an Outperform rating on the shares. The rating affirmation follows Celestica’s Q3 earnings beat.

The firm’s key takeaway is that it sees stronger than expected demand from its three large hyperscaler customers heading into FY2026.

CLS is also witnessing a “growing pipeline of opportunities” driven by strong market demand, CLS’s competitive advantages, and helpful technology trends.

The stock remains attractive for BMO as it has the potential to perform better than expected, and also because AI capex spending remains strong beyond FY2027.

“We remain Outperform on CLS and have raised our estimates following Q3/25 results and the investor day. Our key takeaway is that CLS is seeing stronger-than-expected demand from its three large hyperscaler customers heading into FY2026—with a growing pipeline of additional opportunities driven by a combination of strong endmarket demand, its competitive differentiation and favorable technical trends that play to its strengths. We believe the stock remains attractive given the potential upside to our estimates and our view that AI capex spending will remain strong beyond FY2027.”

Celestica Inc. (NYSE:CLS) offers a range of product manufacturing and related supply chain services.

While we acknowledge the potential of CLS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 11 Must-Watch AI Stocks on Wall Street and 10 AI Stocks in the Spotlight This Week.

Disclosure: None.