BCE Inc.: AI Data Center Expansion Unlocks Long-Term Value, Supporting Buy Rating and Higher Target Price

TD Cowen analyst Vince Valentini has reiterated their bullish stance on BCE stock, giving a Buy rating on March 7.

Vince Valentini has given his Buy rating due to a combination of factors tied to BCE’s expanding data center strategy and its financial impact. He highlights that the new 300MW AI-focused facility in Saskatchewan is fully contracted and power-secured, which meaningfully lifts BCE’s long-term targets for revenue, EBITDA, and free cash flow while demonstrating a disciplined “under-promise and over-deliver” execution approach.

He also notes that, even after conservatively accounting for the $1.7B in additional capital spending as debt, the incremental EBITDA from this project creates substantial equity value and justifies raising the price target to C$41.00. Although he sees a case for a higher valuation multiple over time, he maintains a cautious stance on that front for now, yet still views the project’s economics and growth visibility as strong enough to support a Buy recommendation on the shares.

In another report released on March 7, TipRanks – Google also reiterated a Buy rating on the stock with a C$39.00 price target.