The notion of mining vehicles that can operate remotely may sound like the stuff of science fiction or some video games, but it is currently being worked on all the same. In fact, communications stock Bell Canada (TSE:BCE) is currently working with MacLean to figure out just how to set such things up. That gave Bell Canada just a little extra life in Tuesday morning’s trading, up fractionally in the session.
Bell installed a private mobile network (PMN) at MacLean’s research and training facility to establish the needed communications infrastructure to make research happen. MacLean’s facility will get further upgrades from there, becoming a “Centre of Excellence” that uses Bell’s 5G/LTE network to connect MacLean’s ground-level operations with the underground parts where all the mining takes place.
The new mining equipment is looking to run with fewer emissions and make it safer for mining workers, both of which are admirable goals. The notion that, someday, such equipment could be used for lunar mining, mining the ocean floor, or even mining in the asteroid belt is hardly out of line and would be welcomed.
Comes at a Good Time
The arrival of such news injects some vitally-needed hope into Bell’s operations. After all, it was just a couple weeks ago that Moody’s cut Bell’s bond rating to one step above junk status, noting that its growth in earnings is not matching the expansion of its debt load.
Moody’s lowered Bell’s rating from Baa2 to Baa3, though it did raise its outlook from Negative to Stable. Moody’s noted, “Bell Canada has consistently moved debt/EBITDA up annually since 2019 and has not demonstrated any commitment to deleveraging while maintaining a dividend growth model.” Further, Moody’s noted that this combination “…raises governance risk and is a factor that drives the rating downgrade.”
Is Bell Canada a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:BCE stock based on three Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 7.54% loss in its share price over the past year, the average TSE:BCE price target of C$49.85 per share implies 6.01% upside potential.
