Bernstein: AI network equipment demand remains strong; market share and profit margins determine valuation recovery

Bernstein forecasts an EPS of approximately $36 for Celestica in 2028. Based on institutional buy-side estimates, its current stock price implies a roughly 9.7x P/E ratio for 2028. The market is questioning whether Celestica can defend its market share and profit margins after Google expands its TPU supplier base. Bernstein maintains an Outperform rating and a $520 price target, highlighting the October 27 Investor Day as a near-term catalyst.