10:51 AM EDT, 06/12/2024 (MT Newswires) -- National Bank said Tuesday that it has lowered the price target on BCE (BCE.TO) to $52 from $53 while maintaining the "outperform" rating.
The price target cut follows Bell Canada's deal to sell Northwestel, the largest telecom in the North which it has owned 100% since 1988, to Sixty North Unity, a consortium of Indigenous communities for up to roughly $1 billion.
The deal is expected to close in the fourth quarter. National Bank estimated the gain on sale at about $600 million.
"Our target is based on average of 2024E DCF & 2025E NAV, with an implied EV/ EBITDA multiple of 8.0x 2024E/2025E (ex future spectrum spending)," the analysts said.
Price: 47.01, Change: +0.14, Percent Change: +0.30