Doubts Remain About Celestica's Future Growth

Deutsche Bank has resumed coverage of Toronto-based electronics manufacturer Celestica Inc. (CLS) with a “hold” rating and US$6 price target.

In a research note, analyst Sherri Scribner said she likes the progress so far for the company’s restructuring plan to cut costs and bring its Mexican and European operations back to profitability.

However, she remains concerned about slowing macroeconomic conditions. She also has doubts about Celestica’s focus on core electronics manufacturing services verticals and how this could limit future revenue growth.