Balanced but Constrained: Why Strategic Asset Sales and Deleveraging Support a Hold Rating on BCE

Analyst Aravinda Galappatthige of Canaccord Genuity maintained a Hold rating on BCE, retaining the price target of C$35.00.

Aravinda Galappatthige has given his Hold rating due to a combination of factors, balancing constructive steps with a still-challenged profile. He views the Manitoba land mobile radio sale as strategically sound, since the rich valuation and expected use of proceeds for debt reduction, data-centre expansion, and dividend support demonstrate disciplined capital allocation and a commitment to preserving financial flexibility.

At the same time, he notes that the deleveraging benefit is incremental, with only a small immediate impact on leverage and a gradual path toward the 3.5x target by 2027. In his view, while further asset sales and potential tower or sports holdings monetization could be catalysts, the current valuation, based on segment multiples of 6x EV/EBITDA for Wireline and Media and 7x for Wireless, already fairly reflects BCE’s risk-reward, justifying a Hold stance and a C$35.00 target price.

In another report released yesterday, TipRanks – OpenAI also reiterated a Hold rating on the stock with a C$38.00 price target.