BCE resumed with a Market Perform at BMO Capital

BMO Capital analyst Tim Casey resumed coverage of BCE (BCE) with a Market Perform rating with a price target of C$35, down from C$51, following the completion of the ~C$7.6B Ziply Fiber transaction. The firm expects revenue will “contract modestly in 2025 and 2026 on an organic basis before contributions from Ziply.” In 2026, BMO expects contributions from Ziply will “generate ~2% growth on a consolidated EBITDA basis but net earnings will decline on higher interest and D&A costs.” The firm also sees free cash flow remaining relatively flat and leverage remaining elevated.