Q: Happily, I bought CLS in May '25 and am riding a 150% increase. How do you feel about adding with the current PE at 60?
5i Research Answer:
Analyst estimates continue to trend higher, sales and earnings growth are strong, and margins are expanding. It trades at a forward earnings multiple of 44X, which is not cheap, but this is a company that is benefiting from the AI revolution and we think management has executed well. At the first sign of a potential slowdown in AI Capex spending, we think these names could get hit, but we also believe it is sitll relatively early in the AI movement. For a long-term hold, we would be comfortable adding here.