UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Celestica

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Celestica CLS, and slightly raised its price target from $7.00 to $8.00. Deutsche Bank noted, “Subdued F1H-13 outlook, but improvements expected in F2H-13. CLS reported largely in-line F4Q-12 results, but F1Q-13 guidance was slightly lower. Mgmt noted soft end demand across a number of markets and some deterioration of its base business, both of which are expected to persist through F1H-13. As such, the company announced an additional $15M of restructuring, driven by the RIM exit and overhead reductions. While the F1H- 13 outlook remains muted, CLS was much more positive on growth opportunities in F2H-13. We have reduced our estimates on softer near-term demand but increased our PT to $8 on a roll-through of valuation and a higher multiple. We see shares as fairly valued vs. peers. Maintain Hold.” Celestica closed on Tuesday at $8.63.