Should I Buy CLS? CLS 2026 Analysis

Should You Buy Celestica Inc (CLS) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

307.530

1 Day change

4.29%

52 Week Range

363.400

Analysis Updated At

2026/02/04

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Not a good buy right now for an impatient investor: near-term risk/reward skews negative with momentum still weak and a live headline overhang (Pomerantz securities-fraud investigation).
Price is sitting just above key support (~280.65). A clean break below support can trigger another leg down before a durable bounce.
Long-term fundamentals and Street targets remain attractive, but the current tape favors waiting for stabilization (reclaiming ~310 pivot) rather than buying into weakness.

Intellectia Proprietary Trading Signals

AI Stock Picker: no signal on given stock today.
SwingMax: No signal on given stock recently.

Technical Analysis

Trend/momentum: Bearish-to-neutral short-term. MACD histogram is negative (-2.242) and only “negatively contracting,” which suggests downside momentum may be slowing but is not reversed.
RSI(6)=46.0: Neutral, consistent with a weak bounce attempt rather than a confirmed uptrend.
Moving averages: Converging MAs typically signal indecision/transition; given the recent drawdown, this leans “base-building” at best, not a fresh uptrend.
Key levels: Current ~282 is just above S1=280.653 (near-term line in the sand). Below that, next support is S2=262.196. Upside reclaim levels: Pivot=310.529, then R1=340.406.
Pattern-based stats provided: 70% probability of further downside (-3.78% next day; -3.38% next week), reinforcing that the current setup is not an “urgent buy.”

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/sentiment: Put/Call ratios are low (OI PCR 0.7; Volume PCR 0.3), indicating call-heavy sentiment (bullish skew) despite the pullback.
Volatility: IV30 ~84.5 vs HV ~80.3 (elevated). IV percentile ~82 indicates options are expensive; market is pricing large moves.
Flow intensity: Today’s option volume is ~45% of avg 30D (not a major “capitulation” day), but open interest is elevated vs average (today vs OI avg 30D ~108.6%), suggesting substantial positioning already exists.
Takeaway: Options lean bullish, but high IV + weak price trend implies sentiment is optimistic while the stock still needs technical confirmation.

Technical Summary

Sell

Buy

Positive Catalysts

- Q4 FY2025 results were strong: revenue +44% YoY; EPS +79% YoY; raised FY2026 revenue outlook to ~$17B.
- Multiple bullish analyst views remain intact (several Buy/Overweight/Outperform) with high targets (e.g., $400 from BofA/RBC).
- Hedge funds are buying aggressively: reported buying amount up ~309% over the last quarter.
- AI/data-center hardware demand narrative remains a multi-year tailwind (white-box switches, custom ASIC/accelerated server ramps).

Neutral/Negative Catalysts

- Active “Pomerantz LLP investigating potential securities fraud” headline is a near-term sentiment drag and can keep buyers sidelined.
- Competitive/share-shift concern tied to reports around Google TPU assembly work potentially moving (even if some analysts call the selloff an overreaction).
- Price action is still weak: -4.92% regular-session move and additional pre-market weakness (-2.50%) indicates poor near-term tape.
- Quant/pattern outlook provided points to continued downside bias over the next day/week/month.

Financial Performance

Latest quarter: 2025/Q4.
Revenue: $3.6549B, +43.57% YoY (strong acceleration).
Net income: $267.5M, +76.33% YoY (profit growth outpacing revenue).
EPS: $2.31, +79.07% YoY (strong operational leverage).
Gross margin: 11.52, +2.67% YoY (modest improvement, supportive for earnings durability).
Bottom line: Fundamentals are clearly strong, but the stock is currently trading more on positioning/news risk and short-term momentum than on the quarter itself.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: Predominantly positive with multiple target raises, but not uniform—Citi cut its target ($375->$338) while still rating Buy.
Key changes: Barclays raised PT to $391 (Overweight). BofA initiated Buy with $400. RBC reiterated Outperform with $400. TD Cowen raised PT but kept Hold (C$330). TD Securities maintained Hold with $305.
Wall Street pros: Strong AI infrastructure demand exposure; raised FY2026 outlook; expectation of continued share gains and program ramps into FY27.
Wall Street cons: Competitive risk (hyperscaler supply-chain shifts), and the legal/investigation headline can suppress multiple expansion in the near term.
Influential/political trading: No recent congress trading data available; insiders reported neutral (no significant trend).

11 Analyst Rating

Wall Street analysts forecast CLS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLS is 376.73 USD with a low forecast of 305 USD and a high forecast of 440 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

9 Buy

2 Hold

0 Sell

Strong Buy

Current: 294.890

Low

305

Averages

376.73

High

440

Current: 294.890

Low

305

Averages

376.73

High

440

TD Cowen

Hold

maintain

$305 -> $330

AI Analysis

2026-01-30

Reason

TD Cowen

Price Target

$305 -> $330

AI Analysis

2026-01-30

maintain

Hold

Reason

TD Cowen raised the firm's price target on Celestica to C$330 from C$305 and keeps a Hold rating on the shares. The firm said they see an improved risk/reward following the pullback after Q4 results.

Barclays

Overweight

maintain

$359 -> $391

2026-01-30

Reason

Barclays

Price Target

$359 -> $391

2026-01-30

maintain

Overweight

Reason

Barclays raised the firm's price target on Celestica to $391 from $359 and keeps an Overweight rating on the shares. The company upped its fiscal 2026 guidance by $1B, but his is conservative and could be raised throughout the year, the analyst tells investors in a research note.

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CLS Should I Buy

CLS Should I Buy

Should You Buy Celestica Inc (CLS) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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