In a report released today, Aravinda Galappatthige from Canaccord Genuity maintained a Hold rating on BCE (BCE – Research Report), with a price target of C$31.50.
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Aravinda Galappatthige has given his Hold rating due to a combination of factors impacting BCE’s recent performance. The company’s Q1 results were mixed, with financial outcomes slightly better than expected, primarily driven by the Media segment, but offset by weaker subscriber trends. The decision to cut dividends by 56% was more significant than anticipated, reflecting financial adjustments that might concern some investors.
Additionally, BCE’s wireless segment showed negative growth, with postpaid mobile net losses and a decline in mobile phone ARPU. However, the partnership with PSP Investments to fund future fiber deployment in the US is a positive step, as it moves capital commitments off the balance sheet. Despite these strategic initiatives, the overall performance and market conditions suggest a cautious approach, justifying the Hold rating.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BCE in relation to earlier this year.