TD Securities raised its price target on Celestica Inc. (CLS.TO, CLS) to US$107 from US$70 on Tuesday.
Analyst Daniel Chan maintained a Buy rating on shares of the Canadian manufacturing and supply chain solutions company.
Dual-listed Celestica declined approximately 28% on Monday.
"The market's reaction yesterday was likely driven by fear of hyperscalers slowing AI infrastructure investments," Chan said in a note to clients.
"As a major supplier of datacentre networking and compute equipment, we do not believe Celestica is immune from this risk; however, we believe there are many opportunities that may come from being able to deliver GenAI at significantly lower costs," the analyst said.
"We believe the current share price presents an attractive risk/reward profile."
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