BCE (BCE) Stock Forecast & Price Target

BCE has demonstrated robust performance indicators, including a 3.3% year-over-year growth in Internet revenue and a significant increase in residential Internet customers on fiber-to-the-home platforms, which rose by 10% year-over-year. The company's media segment also showcased strength, with digital revenue growing by 6.0% year-over-year in Q4/24 and contributing over 42% of total Bell Media revenues, highlighted by the 18% growth in Crave subscribers. Additionally, BCE's management indicated a firming up of Internet and wireless pricing environments, which, combined with improved postpaid churn and wireless ARPU growth, suggests a positive outlook for financial performance moving forward.

BCE's stock outlook is negatively impacted by a 2.7% decline in blended phone ARPU, primarily driven by heightened promotional activities and sustained low pricing in the wireless market. The company has adjusted its medium-term growth forecast down from 2.25% to 1.5%, anticipating lower growth in Internet services and a deterioration in the business market that may lead to reduced data growth within Wireline. Additionally, continued pressure from lower net adds in postpaid subscriptions, increasing churn rates, and adverse economic conditions could further hinder BCE's performance in a high-interest rate environment.