BCE: Resilient Fundamentals and Secure Dividend Support a Buy Rating Despite Competitive Headwinds

In a report released today, Vince Valentini from TD Cowen maintained a Buy rating on BCE, with a price target of C$38.00.

Vince Valentini has given his Buy rating due to a combination of factors that support both the stability and income appeal of BCE’s shares. He believes the company remains on track to meet its longer-term 2028 financial objectives, even after modest downward revisions to certain forecasts, and he views the dividend as well-covered and secure. While acknowledging that other telecom names may offer somewhat greater upside on a pure valuation basis, he highlights BCE’s relatively lower event risk and its suitability for investors prioritizing dependable income and capital preservation. The recent share price softness following Q4 results is interpreted as a normal reaction rather than a sign of deteriorating fundamentals.

Valentini also notes that near-term pressures, such as more intense wireless price competition and slightly weaker subscriber and ARPU growth expectations, have been prudently reflected in his updated 2026 estimates. Similarly, he has reduced assumptions for the U.S. Ziply venture to account for a tough broadband competitive landscape and execution challenges as the strategy shifts toward more ambitious fiber expansion. Even with these adjustments, he sees BCE’s overall earnings and cash flow trajectory as intact, providing sufficient support for the dividend and the current valuation. In his view, this combination of resilient fundamentals, attractive yield, and comparatively moderate risk justifies maintaining a Buy recommendation.

In another report released today, BMO Capital also maintained a Buy rating on the stock with a C$37.00 price target.