Analyst Vince Valentini of TD Cowen maintained a Buy rating on BCE, reducing the price target to C$38.00.
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Vince Valentini has given his Buy rating due to a combination of factors that suggest stability and potential for income through dividends. Despite some mixed results in the recent quarter, the overall financial impact on BCE’s EBITDA and free cash flow projections remains minimal for the upcoming years. Valentini notes that BCE’s pricing discipline in the Canadian wireless market is a positive factor, as it focuses on quality over sheer volume growth.
Valentini also highlights that while subscriber growth was somewhat muted, the company’s strategic focus on maintaining pricing discipline could lead to better financial outcomes in the long term. The anticipated less aggressive promotional behavior during the Black Friday season is another factor that could benefit BCE’s financial performance. Although the price target has been slightly adjusted from C$39.00 to C$38.00, the overall outlook remains positive, supporting the Buy rating for investors seeking stability and dividend income.
Valentini covers the Communication Services sector, focusing on stocks such as BCE, Telus, and Quebecor. According to TipRanks, Valentini has an average return of 0.6% and a 54.55% success rate on recommended stocks.
In another report released on November 7, RBC Capital also maintained a Buy rating on the stock with a C$37.00 price target.