Bank of America Securities analyst David Barden has maintained their bearish stance on BCE stock, giving a Sell rating on January 22.
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David Barden has given his Sell rating due to a combination of factors that suggest BCE is facing challenges in maintaining strong financial performance. One of the primary concerns is the expectation of declining wireless service revenues, driven by soft pricing, which is likely to affect overall revenue growth negatively. Barden anticipates a slight increase in adjusted EBITDA, which aligns with market expectations, but still reflects minimal growth.
Moreover, the high leverage and elevated dividend payout ratio pose significant risks as BCE operates in a competitive environment. The company is also dealing with immigration-related subscriber volatility, which could further pressure its financial metrics. Additionally, the capital intensity is projected to be higher than the market consensus, indicating substantial investment requirements. These factors combined lead Barden to believe that BCE may struggle to improve its financial position in the near term, justifying a Sell rating.
In another report released on January 22, Barclays also downgraded the stock to a Sell with a $21.00 price target.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is neutral on the stock.