BCE, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst David Mcfadgen from ATB Cormark Capital Markets maintained a Buy rating on the stock and has a C$44.00 price target.
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David Mcfadgen has given his Buy rating due to a combination of factors that enhance BCE’s long‑term growth and cash‑flow profile. He highlights the newly announced 300 MW AI-focused data centre in Saskatchewan, where BCE is committing $1.7 billion to a real estate, cooling and connectivity model that avoids direct chip risk while securing anchor tenants and meaningful upfront fees.
In his view, this project, together with higher long‑term guidance for revenue, EBITDA and free cash flow, supports stronger fundamentals from 2027 onward. Mcfadgen also incorporates the planned sale of BCE’s land mobile radio networks, which is expected to unlock value and simplify the business mix, and he maintains a $44.00 target price based on a blended 7.3x EV/EBITDA multiple on 2027 estimates.
In another report released on March 26, TipRanks – Google also reiterated a Buy rating on the stock with a C$39.00 price target.