Q: The stock is down $17 from its recent high. Do others investors see cracks in the armor and recognize the cycle of the business?
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5i Research Answer:
CLS just experienced a quick 20% drawdown recently, but there is no negative news regarding the company’s fundamentals or that the cycle will move unfavourably anytime soon. The negative trends have put tremendous pressure on AI-related themes and semiconductor names, mainly because of a shift from large, AI-theme names to small, mid-cap companies. CLS is trading at 13.1x Forward P/E with solid momentum in the fundamentals, and we are okay to add to CLS at the current price.