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  5. CLS: Hi, Thinking of consolidating two smaller positions into one. [Celestica Inc.]
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Q: Hi,

Thinking of consolidating two smaller positions into one. Can you give me your preference between Celestica and Converge for a three-year hold, with a brief rationale. Thanks!

Brad
Asked by Bradley on June 13, 2024
5i Research Answer:

CTS is cheaper, but CLS is much larger and likely positioned better for growth as the tech sector ramps up further. Both have strong expected growth, and it becomes a question of small cap vs large cap, really. CLS has better momentum, and both have good balance sheets now. CTS might have more potential over a longer period, but for a relatively short period as noted in the question we would side with CLS.