RBC Capital Markets raised its price target on Celestica Inc. (CLS.TO, CLS) to US$400 from US$315.

Analyst Paul Treiber maintained an Outperform rating on shares of the Canadian electronics manufacturing service provider following its Q3 results on Tuesday.

The stock rose $30.80, or 7.2%, to $454.11 on the Toronto Stock Exchange.

"Celestica reported another strong quarterly beat and raise," Treiber said in a note to clients.

"Celestica's momentum with hyperscalers continues to surprise to the upside, as shown by initial FY26 guidance well above expectations," the analyst said.

"With high visibility to sustained >25% growth, further margin expansion and Celestica's shift to higher quality business segments, we see Celestica's valuation premium being sustained."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)