Q: Hi There Would there be any reason for the drop in Celestica shares lately . Could you comment on it going forward ? thanks Larry
5i Research Answer:
Shares of CLS dipped 15% recently alongside the broader semiconductor market. Shares of NVDA and other AI-related chip manufacturers corrected and CLS moved alongside these names. It has seen been rebounding and is so far up almost 5% today.
We continue to like the name based on its strong balance sheet, margin expansion, and benefits from AI spending. We feel it is at an attractive valuation and we feel it can continue to perform well going forward.