Q: In the answer about "5 Canadian growth stocks would you start to accumulate today" you mentioned that Celestica was "high risk, but it has come down to attractive valuations". Can you give you us the most important and particular risks you see for Celestica?
5i Research Answer:
Earnings execution is perhaps the most important. CLS has shown excellent growth as it is now closely tied to the AI/datacentre sector. If this sector slows down, CLS earnings growth will be impacted. While $13B market cap, it is still a relatively small company and there is competition. Also, a general economic slowdown seems more likely today, and it would not be immune.