07:47 AM EST, 02/02/2024 (MT Newswires) -- BCE Inc. (BCE.TO, BCE) was downgraded to Hold from Buy at TD Securities on Friday.
Analyst Vince Valentini lowered his price target on shares of the Canadian media and telecom company to $55 from $57 ahead of its Q4 results for fiscal 2023 on February 8.
"With a challenged revenue growth environment in the industry (particularly in wireline and media), we believe BCE will ramp up its cost-restructuring efforts, including a headcount-reduction program that could lead to higher near-term restructuring costs," Valentini said in a note to clients.
Valentini said he lowered his 2024 estimated free cash flow to $3.924 Billion (from $4.163 Billion previously) due to $300 Million (previously $72mm) in restructuring costs and a higher cash tax estimate ($899 Million versus $843 Million previously).
"With our lowered FCF forecast, we see more risk that dividend growth will be less than 5% (we now assume +3%) for the first time in 15 years, which could act as a headwind for investor sentiment in the near term," the analyst said