Celestica: The AI Re-Rate Is Done At 33x Forward
Celestica Inc. is experiencing significant growth driven by demand from hyperscalers, reporting a 52.8% year-over-year revenue increase. The company's business mix has shifted, with a large portion of revenue now coming from Connectivity & Cloud Solutions. However, concerns about customer concentration and premium valuation lead to a Hold rating for the stock.
- ▪Celestica reported a 52.8% year-over-year revenue growth.
- ▪Connectivity & Cloud Solutions now account for 80% of the company's revenue.
- ▪65% of revenue comes from just three customers, raising concerns about customer concentration.
- ▪The company is undergoing a significant $1 billion capital expenditure expansion.
- ▪Celestica's stock is rated as a Hold due to its premium valuation.
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