BCE downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded BCE (BCE) to Underweight from Neutral with a price target of C$29, down from C$35. The firm cites its reduced long-term estimates, the stock’s valuation versus peers, and an increased likelihood of a dividend cut for the downgrade. While encouraged by BCE’s increased focus on asset monetization and de-levering, JPMorgan says management noted that the board continues to review the dividend and remains focused on optimization of the capital structure and maintaining an investment grade rating. It believes these comments “leave the door open” to a potential dividend cut given pressures in the ecosystem.