Q: Given the significant run up of CLS in the past year would you still consider this a strong buy right now, or would it be prudent to wait for the next "dip", or is it already over bought? Thanks.
5i Research Answer:
It is a tough prediction, of course, but based on comments by the company and by some of its customers, we think it still has plenty of room for growth. It can no longer be considered 'cheap' at 31X earnings, but is still priced attractively compared to many tech and peer companies. With 40% EPS growth expected this year and 20%+ next year, we think it can go higher. But we would not expect the same type of returns (up 154% in a year), certainly.