National Bank Financial recently revised their FY2026 earnings per share (EPS) forecasts for BCE Inc (BCE:CA). The bank has reduced their EPS estimates from $2.67 to $2.38. However, the consensus among equity analysts places BCE’s FY2026 earnings at $3.11 per share.
This downward revision by National Bank Financial places them below the consensus, signifying a bearish outlook. Yet, other analysts, such as those from Canaccord Genuity Group, TD Securities, JPMorgan Chase & Co., and Barclays, have made adjustments in their price targets and ratings for BCE.
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Will BCE Weather the Mixed Analyst Ratings and Target Price?
Mixed opinions champion the analysts’ landscape concerning BCE. Ten equities Research Analysts label the stock a ‘hold’, while only one advocates a ‘buy’ rating. A consensus amongst these analysts sets the target price for BCE at C$41.88, posing a potential upside.
Stock Target Advisor’s Analysis on BCE:
Stock Target Advisor presents a somewhat pessimistic projection for BCE’s future. A ‘Strong Sell’ rating is attached to the stock, and a target price of C$44.71, a 31.55% projected price change in the next 12 months. This contrasts sharply with BCE Inc’s average analyst target price of C$45.61, which carries a ‘Buy’ rating.
BCE’s valuation ratios concluded a price to earnings ratio of 369.78 (3.57% sector percentile), a price to book ratio of 2.15 (55.56% sector percentile), and a price to cash flow ratio of 3.82 (89.66% sector percentile).
Is the Telecom Services Sector Healthy Enough to Support BCE’s Recovery?
The Telecom Services sector maintains an average ‘Buy’ rating. However, the Stock Target Advisor’s outlook on this sector is ‘Slightly Bearish’. Subsequently, the sector itself might not significantly aid BCE’s rebound.
Conclusion:
BCE’s bearish outlook according to National Bank Financial and Stock Target Advisor may unfavorably strike investors. However, the average analyst recommendation of ‘Buy’ poses an optimistic angle. Yet, BCE’s financial performance over both the short and long term, coupled with middling sector performance, raises red flags.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
