Canaccord Genuity analyst Aravinda Galappatthige has maintained their neutral stance on BCE stock, giving a Hold rating on October 11.
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Aravinda Galappatthige’s rating is based on a blend of strategic shifts and financial projections that BCE has outlined for the coming years. The company is aiming for modest growth in revenue and EBITDA, with a significant focus on increasing free cash flow, which is projected to grow at a compound annual growth rate of 15% from 2025 to 2028. While these projections align with market expectations, the cautious outlook on free cash flow, particularly due to the fiber rollout in the US and higher cash taxes, tempers enthusiasm.
Moreover, BCE’s strategy to revitalize its Enterprise and Media segments adds credibility to its growth plans. The company is leveraging partnerships and expanding its AI-powered solutions to boost Enterprise revenue, while its media strategy focuses on digital growth, particularly through the Crave platform. Despite these positive strategic moves, the hold rating is maintained due to unchanged target price and valuation metrics, reflecting a balanced view of potential growth against existing challenges.
In another report released on October 11, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$35.00 price target.