Celestica: Time To Bet Bigger

KM Capital8.03K FollowersFollow5ShareSaveCommentsSummaryCelestica is upgraded from 'Buy' to 'Strong Buy' as fundamentals improve and valuation becomes more attractive after a recent price dip.CLS benefits from sustained hyperscaler AI infrastructure investment and is expanding its moat through a strategic partnership with AMD on the Helios rack-scale AI platform.CLS's forward P/E for FY2028 is now well below 20, and its non-GAAP PEG ratio of 0.7 is materially below the sector average, supporting a compelling valuation.Key risks include rising customer concentration—the top 10 customers are now at 80% of sales—and execution risk from a $1 billion CapEx cycle to meet AI demand. JHVEPhoto/iStock Editorial via Getty Images Celestica's (CLS) investors have been suffering from weak sentiment around the AI narrative over the last few months. Therefore, the stock is currently 9% cheaper than it was when I upgraded myThis article was written byKM Capital8.03K FollowersFollowComing from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel very confident in my investment decisions. My hands-on experience shaped deep understanding of risk, reward and the delicate balance between these two variables. Driven by a desire to share my insights and contribute to the investor community, I embark on this new chapter with Seeking Alpha. My articles will be crafted with clarity and precision, devoid of jargon and fostering accessibility for investors of all experience levels. My background in IT grants me a valuable perspective, particularly when navigating the complexities of technology stocks. Yet, my pursuit of knowledge extends beyond the realm of silicon, encompassing diverse sectors and uncovering promising prospects across the economic landscape. Whether you are a seasoned investor seeking fresh perspectives or a nascent one embarking on your financial voyage, I extend a warm invitation to join me on this intellectual journey. Through collaborative exploration and insightful analysis, let us unlock the secrets of the market and chart a path towards shared financial success.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CLS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.