12:10 PM EST, 01/22/2026 (MT Newswires) -- CIBC Capital Markets maintained its outperformer rating on the shares of Celestica ( CLS ) and its target price of US$400 ahead of the company's fourth-quarter results.

The bank expects Celestica's ( CLS ) outlook and FactSet estimates for Q4 and 2026 to be still "conservative" given the improved visibility into Alphabet (GOOG), Meta Platforms (META), Amazon.com (AMZN), and OpenAI capital expenditures spending plans. CIBC said that recent announcements confirm a "pull forward" in demand from 2027 into 2026 and supports its positive thesis.

CIBC forecasts Q4 revenue of $3.435 billion and earnings per share of $1.76. It expects Cloud and Connectivity (CCS) segment growth to be strong, about 53% year-over-year due to 800G networking switch demand and a new ramping server program.

The bank also forecast the ATS unit to be flat quarter-over-quarter. It believes catalysts for incremental growth are customer capital expenditure plans for 2026 and "incremental" demand for the 1.6T switch that already has multiple hyperscaler design wins scheduled to ramp in the second half of 2026 and 2027.

"In our view, Celestica's ( CLS ) current valuation is attractive relative to EMS peers (FLEX and JBL) and its Networking peers (ANET, Accton [2345-TPE], CSCO, and PSTG)," said analyst Todd Coupland.

Price: 399.17, Change: -29.18, Percent Change: -6.81