BCE (BCE) Stock Forecast & Price Target

BCE's strong market position is underscored by a year-over-year increase in Internet revenue of 3.3%, as well as a notable growth in residential Internet customers on Fiber to the Home (FTTH) which rose by 10%, indicating robust demand for high-speed broadband services. The company's media segment also shows promising growth, with digital revenues increasing by 6% year-over-year in Q4/24, representing 42% of total media revenues and highlighting the company's effective leveraging of digital channels alongside a growing subscriber base for its streaming service, Crave. Furthermore, the firm is experiencing a positive shift in the Internet and wireless pricing environments, contributing to expectations of improved data growth, reduced churn rates, and enhanced average revenue per user (ARPU) in the near future.

BCE's stock outlook is negatively affected by a 2.7% decrease in blended phone Average Revenue Per User (ARPU), primarily driven by heightened promotional activity and competitive pricing pressures. The company is confronted with declining wireless service revenue, which fell by 1.5% year-over-year, attributed to reduced postpaid net additions and slower population growth impacting gross activations. Additionally, concerns regarding lower growth in both the Internet and business markets, alongside potential increases in postpaid churn and ARPU decline in a high-interest rate environment, further exacerbate the company's financial challenges.