BCE (BCE) Stock Forecast & Price Target

BCE is a leading telecommunications provider with a strong foothold in the Canadian market, serving millions of wireless and broadband customers. The company's recent purchase of Ziply Fiber, expansion into the Pacific Northwest, and focus on media and digital platforms showcase its growth and diversification strategy. Additionally, its strategic partnership in sovereign AI cloud infrastructure, expanding data center business, and expected growth in revenue and EBITDA demonstrate its potential for long-term success and potential upside in its stock value. With a strong asset base, steady financials, and a premium position in the industry, we remain positive on BCE and maintain a Sector Outperform rating.

BCE is facing downside pressure from potential disruption by SpaceX/Starlink and has underperformed the market, but has recently secured data centre wins, potential SOTP upside, and a strong dividend yield supported by a healthy payout ratio. The target price of $37.00 is based on 2028E, and is discounted back by 15%. Multiples of 7.0x wireless EBITDA and 7.5x wireline EBITDA are used, alongside a 5.0x Media EBITDA multiple and a 20% hidden asset in the Montreal Canadiens stake.