Canaccord Genuity analyst Aravinda Galappatthige maintained a Hold rating on BCE (BCE – Research Report) today and set a price target of C$32.00.
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Aravinda Galappatthige has given his Hold rating due to a combination of factors that suggest a cautious yet optimistic outlook for BCE. The company is poised to return to a steady growth trajectory after a period of volatility, with expectations of low single-digit growth and a re-establishment of its defensive credentials within the next year. However, there is a divergence between market forecasts and management’s expectations for earnings growth beyond 2026, which tempers immediate enthusiasm.
Key areas of potential growth include the expansion of Ziply’s footprint in the US, which could significantly increase subscriber numbers, and sustained growth in the Media segment, which diverges from the consensus outlook. Additionally, BCE’s strategy to invigorate its Bell Business Markets sector and improve customer experience metrics could enhance its competitive position. Despite these positive prospects, the execution of these plans remains critical, and the market is watching for tangible improvements in these areas before revising its estimates.
Galappatthige covers the Communication Services sector, focusing on stocks such as BCE, Rogers Communication, and Cogeco Communications. According to TipRanks, Galappatthige has an average return of 0.2% and a 50.61% success rate on recommended stocks.