BCE: Share Price Will Rise On Clearer Outlook And Recent Rating Upgrades

Analysts have nudged their average price target for BCE modestly higher to C$34 to C$37 per share, citing improved confidence in the company’s multi year outlook, a better growth and balance sheet trajectory, and expectations for gradual revenue and EBITDA reacceleration from 2026.

Analyst Commentary

Recent research updates reflect a more constructive stance on BCE, with several firms lifting ratings and targets as they recalibrate models to the company’s longer term guidance and post selloff valuation.

Bullish Takeaways

• Bullish analysts point to improved visibility on BCE’s outlook through 2028, arguing that clearer guidance supports greater confidence in execution and long term growth.
• Upgrades to Buy and Outperform, alongside price target increases to around C$37, highlight a view that the current share price underestimates the company’s medium term revenue and EBITDA reacceleration.
• Analysts cite a healthier balance sheet trajectory and a better growth profile than in recent years as reasons to expect a gradual rerating as fundamentals strengthen.
• Some see the recent share price weakness as creating an attractive entry point ahead of the expected inflection in revenue and EBITDA beginning in 2026.

Bearish Takeaways

• Bearish analysts, or those maintaining more neutral stances, view the upgrades and target hikes as already reflecting a significant portion of the anticipated 2026 to 2028 growth, limiting near term multiple expansion.
• There is lingering caution around BCE’s ability to deliver on a “gradual and sustained” acceleration in revenue and EBITDA, with execution risk seen as a key constraint on valuation upside.
• Some investors remain focused on sector level headwinds, including competition and capital intensity, which could pressure free cash flow and slow balance sheet improvement if not carefully managed.

What's in the News

• BCE renewed its normal course issuer bid on the TSX, allowing repurchases of up to 10% of the public float of each series of its listed First Preferred Shares between November 11, 2025 and November 10, 2026, with all repurchased shares to be cancelled (Key Developments).
• The company plans to use an automatic securities purchase plan to buy back preferred shares even during blackout periods. This reflects management’s view that the shares may trade below intrinsic value at times (Key Developments).
• OverActive Media extended its partnership with Bell Canada by two years to September 30, 2027, maintaining Bell as exclusive telecom sponsor in Canada and retaining naming rights to the Bell Fibe Zone training facility in Toronto (Key Developments).
• BCE issued new earnings guidance, targeting approximately $24.7 billion in revenue for 2025 and projecting revenue growth to a range of $26.2 billion to $27.8 billion by 2028 (Key Developments).
• BCE Inc. (TSX:BCE.PRT) was removed from the S&P/TSX Preferred Share Index, affecting its visibility among index-tracking and benchmark-constrained investors (Key Developments).

Valuation Changes

• Fair Value: Unchanged at approximately CA$36.47 per share, indicating a stable intrinsic value estimate despite market volatility.
• Discount Rate: Risen slightly from 7.24% to about 7.59%, implying a modest increase in the assumed cost of capital and risk profile.
• Revenue Growth: Essentially unchanged at roughly 2.13% annually, reflecting a steady outlook for top line expansion.
• Net Profit Margin: Flat at about 4.87%, suggesting no material shift in long term profitability assumptions.
• Future P/E: Increased marginally from 34.20x to about 34.54x, which points to a slightly higher valuation multiple applied to forward earnings.