Update shared on 27 Nov 2025
Fair value Increased 0.16%The analyst price target for BCE has increased modestly, with several firms now seeing improved growth prospects and balance sheet strength. This has led to higher targets such as C$37 from C$35, as analysts cite greater confidence in the company's outlook through 2028.
Analyst Commentary
Recent updates from equity analysts reflect evolving opinions on BCE's outlook, driven by the company's improved financial profile and revised forward guidance. While some remain cautious, an increasing number are signaling optimism about BCE's growth prospects and valuation.
Bullish Takeaways- Bullish analysts have raised price targets for BCE, suggesting increased confidence in the company's ability to deliver stable growth through 2028.
- The upgraded recommendations point to an improved outlook for revenue and EBITDA growth, with expectations for reacceleration beginning in 2026.
- Bullish sentiment is underpinned by the company's strengthened balance sheet and the attractiveness of current share price levels for new investors.
- Recent company updates have improved perception of BCE's risk profile, which further supports upward revisions in valuation targets.
- Bearish analysts remain cautious and maintain Hold ratings, indicating uncertainty about the near-term pace of execution even though there are medium-term improvements.
- Lingering concerns persist regarding the sustainability of BCE's growth momentum compared to historical performance.
- Some note that while the company's balance sheet has improved, macroeconomic headwinds and competitive market dynamics may affect upside potential.
What's in the News
- BCE announced a renewed plan to repurchase up to 10% of its public float of outstanding First Preferred Shares from November 2025 to November 2026. All repurchased shares will be cancelled. (Company announcement)
- OverActive Media Corp. extended its partnership with Bell Canada through September 2027, maintaining Bell as the exclusive telecom sponsor for Canadian operations and securing naming rights to the Bell Fibe Zone. (Company announcement)
- BCE provided earnings guidance for 2025, forecasting revenue of approximately $24.7 billion, with $26.2 to $27.8 billion expected by 2028. (Company guidance)
- BCE Inc. was dropped from the S&P/TSX Preferred Share Index. (Index provider)
Valuation Changes
- Fair Value Estimate: increased slightly from CA$36.41 to CA$36.47, reflecting a modest upward adjustment.
- Discount Rate: edged down from 7.44% to 7.24%, indicating a marginally lower required return.
- Revenue Growth Outlook: decreased marginally from 2.14% to 2.13%, showing a minor reduction in expected revenue expansion.
- Net Profit Margin: slipped from 4.98% to 4.87%, pointing to a slight softening in profitability projections.
- Future P/E Ratio: fell modestly from 34.56x to 34.20x, implying a minor downward revision in forward valuation multiples.
Disclaimer
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