Q: your thoughts on Celestica. In my daughters TFSA account up 435%.. 15% of her holdings.. thank you..
5i Research Answer:
We continue to like CLS and hold it in our growth model portfolio. Analyst estimates are quite positive for the next couple of years, and it recently beat on both sales and earnings in its latest quarter, and increased guidance for the full year. It continues to trade at a cheap valuation of 12.8X forward earnings. Free cash flow has been increasing over the past year, and we feel it operates in a space with lots of industry tailwinds. While we cannot personalize responses or weightings, we are comfortable with the name, but each investor needs to determine what weight they can comfortably hold a position at and 'sleep well at night'.