RE:RE:RE:RE:BMO on CRTC Decision/BCE Reaction
ztransforms173 wrote: - ANYBODY who USES SELL-SIDE analyst's share PRICE TARGETS ALONE is a RECKLESS MUPPET BEGGING to BE WEALTH-EXTRACTED
z173
this is just a few months later did you notice the multiple downgrade.
That's a tool used to justify the stock price projection. EBITDA multiple.
the current share price has an EV:EBITDA multiple of 6.5.
https://ca.investing.com/news/stock-market-news/bmo-downgrades-bce-stock-on-competitive-pressures-in-quebec-and-media-sector-93CH-3330405
Tuesday, BCE (TSX:) Inc . (NYSE::CN) (NYSE: BCE) stock faced a downgrade from BMO (TSX:) Capital Markets, shifting from Outperform to Market Perform, accompanied by a price target reduction to C$46 from the previous C$54. The revision reflects mounting competitive pressures in BCE's core wireless and wireline operations, with particular challenges noted in the Quebec market and in the media segment.
The analyst from BMO Capital highlighted the company's slower growth outlook as a key reason for the downgrade. The firm observed that BCE's year-to-date share price had already fallen by 12%, indicating that some of the anticipated challenges may have already been factored into the stock's current valuation.
Despite this, the analyst expressed a lack of confidence in any near-term fundamental catalyst that could potentially lead to an upward revision of estimates.
The new price target is based on a lowered multiple of 7.5 times the company's expected 2025 EBITDA, a decrease from the previous multiple of 8.0 times. This adjustment aligns with a broader recalibration of target price multiples across the telecommunications sector, as indicated by the analyst.
BCE's downgrade arrives amidst a backdrop of intense competition within the telecommunications industry, which has been particularly pronounced in regions such as Quebec. This competition, alongside the difficult comparisons in the media business, has prompted BMO Capital to reassess the company's growth prospects.
The lowered price target suggests a more cautious outlook for BCE's financial performance over the next few years. Investors and market observers will be closely monitoring the company's strategic responses to these competitive and operational challenges.