Celestica: Once Standardization Sets In, This Would Be A Risky Play
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Andres Veurink1.22K FollowersFollow5ShareSavePlay(12min)CommentsSummaryCelestica is rated Hold due to strong near-term growth but significant long-term standardization and competition risks.CLS’s CCS segment drives rapid revenue growth, fueled by hyperscaler demand, but faces customer concentration and potential margin compression.Peer competition is intense, with larger rivals and looming threats from Taiwanese ODMs as AI hardware becomes commoditized.ATS segment offers revenue stability but lacks growth to offset CCS risks; overall, CLS’s premium valuation is not justified by its risk profile. artisteer/iStock via Getty Images Investment Thesis Right now the market seems to be only looking at the next quarter or the next year's guidance and not at the full picture, at least for any company operating in the supply chainThis article was written byAndres Veurink1.22K FollowersFollowMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to what I invest my money in. My preferred sectors to follow are tech, specifically SaaS and cloud business but recently I've also taken up an interest in writing about the energy and minerals sectors, two areas I'm quite familiar with having followed them for over a decade at this point. I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughs and research is done only by myself.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.