09:36 AM EDT, 04/22/2024 (MT Newswires) -- RBC Capital Markets raised its price target on Celestica Inc. ( CLS ) to US$47 from US$38 on Monday.

Analyst Paul Treiber maintained an Outperform rating on shares of the Canadian electronics manufacturing services company ahead of its Q1 results on April 24.

"We believe Celestica ( CLS ) is likely to report solid Q1 results, as hyperscalers continue to rapidly build out data centres to address strong AI demand," Treiber said in a note to clients.

"Since hyperscalers account for 35% of Celestica's ( CLS ) revenue, hyperscaler strength, in our view, is likely to offset the slowdown in electrical vehicles (EVs), which represents