BCE Inc T.BCE

RBC Has a Much More Positive Outlook on BCE than BMO...

[JoeBravo1]

Thanks goes out to HB77.  FWIW, 11 out of 12 Analysts differ from BMO.  Don't let 1 bad apple spoil the whole bunch...

Sector Perform TSX: BCE; CAD 46.03; NYSE: BCE Price Target CAD 57.00


March 31, 2024

BCE Inc. Company description

BCE is Canada’s largest telecom services company and one of the country’s largest corporations. BCE provides local, long distance, wireless, satellite, television, and Internet services across Canada. BCE has a 100% stake in Bell Media, Canada’s largest integrated media company.

Investment summary

We believe BCE is well equipped to navigate a slower revenue environment leaning on a scale advantage, continued FTTH investment and Internet market share gains, the realization of cost efficiencies, and an extensive array of tactical initiatives across wireless, wireline and media. We believe underlying FCF in the current growth environment should continue to support low-single digit dividend growth underpinned by ongoing structural cost efficiencies and what is likely a permanent stepdown in capex following three years of elevated FTTH investment. While we see more attractive growth and valuation set-ups elsewhere in the sector at the moment, we continue to view BCE as a higher-quality core holding that is well positioned to benefit from network convergence and long-term growth in 5G B2B (IoT, MEC, private network, cloud, security).

Potential catalysts for the stock

• Increased visibility on wireless competition
• Acceleration in wireline data growth driven by Internet penetration and improved business market conditions
• Greater-than-expected cost efficiencies
• A greater-than-expected revenue contribution from 5G
• A decline in bond yields

[JoeBravo1]

Read the S&P and Moody's Report if you want to get a non-biased opinion on BCE's dividend. Both have gone on record stating the dividend is safe as long as BCE addresses and executes on their cost cutting efforts and lowering debt, which they are doing.

[tinkvid]

Ok, dipped a toe in @ 44.12. Shorts started to cover and will keep an eye on.

[JoeBravo1]

This should definitely help fundamentals as on top of the $250 million in labour savings next year, BCE will save $1 Billion by reducing Capex spending. Reducing capital expenditures and fibre expansion Bell announced its intention to reduce capital expenditures by over $1 billion in 2024-25, including a minimum of $500 million in 2024, and roll back fibre network

[JoeBravo1]

Anyone else notice how these programs and sites advertise the negative downgrade, yet they fail to advertise the positive reports? Interesting isn't it?