RE:Nouvelle recommandation CiBC From LaPresse
BCE won the support of CIBC earlier this week. Analyst Stephanie Price now recommends buying the stock of the Montreal telecommunications company. “BCE has been trading at the lowest valuation multiple for five years amid intensifying competition, interest rate volatility and concerns about cash flow growth,” she points out. . Saying she is aware of these concerns, she judges that they are integrated into the price of the stock and says she does not expect a change in the dividend growth model this year. However, she would not be surprised to see an adjustment eventually, perhaps as early as next year.
She believes BCE could also consider selling certain assets or reducing its stake in entities in order to deleverage. She is thinking in particular of satellite TV activities and anticipates that BCE will sell a portion of its stake in MLSE (Maple Leaf Sports & Entertainment).
Will any of these proposed remedial actions be announced at the Q1 earnings next Thursday?