Celestica Expands Production Capacity Amid Strong Demand and Positive Growth Outlook
• Celestica operates two key revenue segments - ATS (defense, industrial) and CCS (communications, enterprise, hyperscalers)
• Pursuing capacity expansions in Thailand and Malaysia to meet strong customer demand
• Maintained 2024 adjusted operating margin outlook of 5.5-6% despite growth deceleration expectations
• Valuation not expensive but needs another year of outperformance to maintain upward stock surge
• Initiate Buy rating based on attractive valuation if AI spending cycle broadens as expected