Celestica (CLS.US) and Ciena (CIEN.US) gained market attention on Monday after Citi upgraded Celestica's investment rating and raised Ciena's target price. The news drove Celestica and Ciena to close up 6.99% and 4.76%, respectively.

Citi upgraded Celestica from "Hold" to "Buy" with a target price of $375. Analyst Atif Malik noted that U.S. hyperscale capital expenditures from major players, including Oracle, are expected to grow 40% in 2026, following a 75% increase in 2025. "We forecast Celestica's communications business to grow 77% and 41% in 2025/26, respectively, and have raised our EPS estimates by 5% and 22% for the same periods," Malik added.

Celestica operates through two segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment serves aerospace, defense, industrial, health tech, and capital equipment markets, while CCS focuses on communications and enterprise markets, including server and storage businesses. The majority of Celestica's revenue comes from CCS.

For Ciena, Citi raised its target price from $141 to $230, citing strong momentum in its data center business following Verizon's (VZ.US) announcement to integrate with Amazon (AMZN.US) cloud services.

Ciena specializes in optical transmission technology, serving global clients such as communication service providers, network operators, cable companies, governments, and enterprises. The company provides equipment, software, and services for transmission, switching, aggregation, service delivery, and data traffic management.