Analyst Aravinda Galappatthige from Canaccord Genuity maintained a Hold rating on BCE and increased the price target to C$34.00 from C$32.00.
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Aravinda Galappatthige has given his Hold rating due to a combination of factors influencing BCE’s current and future performance. The company’s service revenue growth remains under pressure, particularly in the wireless segment, which is expected to continue facing challenges with negative growth and declining ARPU. Additionally, the wireline segment shows a mixed outlook, with retail internet revenue growth being offset by declines in enterprise revenue.
Media revenue is also anticipated to decline due to a tough comparison with a strong performance in the previous year. Despite these challenges, BCE’s acquisition of Ziply is expected to provide some support to its EBITDA. The target price has been slightly increased to C$34.00, reflecting an improved churn outlook and adjustments in wireless and wireline multiples. However, uncertainties remain, particularly in the Media and Enterprise segments, leading to the maintenance of the Hold rating.
According to TipRanks, Galappatthige is an analyst with an average return of -0.4% and a 48.78% success rate. Galappatthige covers the Communication Services sector, focusing on stocks such as Telus, BCE, and Rogers Communication.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$35.00 price target.