Celestica Inc Surpasses Analysts’ Target: What’s Next for Investors?
In recent trading, shares of Celestica Inc (Symbol: CLS) reached $67.94, surpassing the average analyst 12-month target price of $64.14. When a stock trades above its target, analysts typically have two options: either downgrade their valuation or adjust the target price upward. Reactions often hinge on the company’s performance and developments that might have propelled the stock’s rise. If the outlook is positive, it could suggest that the target price warrants an increase.
Celestica Inc’s average price target is calculated from seven different analysts within the Zacks coverage universe. It’s important to note that this figure represents an average—some analysts have set lower targets, with one looking for a price of $58.00, while another has set a high of $70.00. The standard deviation of these targets stands at $4.18, indicating some variability in expectations.
The concept of using an average price target hinges on the “wisdom of crowds” philosophy, which combines diverse opinions from various analysts. As CLS traded above the average target price of $64.14/share, it prompts investors to reconsider the merits of the stock. This raises the question: Is $64.14 just a stepping stone towards a higher target, or has the valuation climbed too high, suggesting it might be time to take profits? Below is a breakdown of the current analyst ratings for Celestica Inc:
| Recent CLS Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 4 | 4 | 3 | 3 |
| Buy ratings: | 2 | 2 | 2 | 2 |
| Hold ratings: | 1 | 1 | 2 | 2 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.57 | 1.57 | 1.86 | 1.86 |
The average rating in the last row is measured on a scale from 1 to 5, where 1 indicates Strong Buy and 5 represents Strong Sell. This article utilized data sourced from Zacks Investment Research via Quandl.com. For more insights, you can access the latest Zacks research report on CLS — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
