BCE (BCE) Stock Forecast & Price Target

BCE has demonstrated a solid performance in key areas, with postpaid net additions concentrated on the main Bell brand and a year-over-year internet revenue growth of 3.3%. The strong adoption of fiber-to-the-home (FTTH) technology is evident, with a 10% increase in residential customers, and a positive trend in wireless-Internet bundles, which surged by 12% year-over-year. Additionally, Bell Media's digital revenue growth of 6.0% in Q4/24, along with a notable increase in Crave subscribers, suggests robust demand and a shifting revenue landscape that enhances BCE's overall growth prospects.

BCE is experiencing a decline in blended phone average revenue per user (ARPU), which fell by 2.7% due to heightened promotional activity and competitive pricing pressures during peak sales periods. This trend, compounded by lowered net additions in postpaid subscribers resulting from slowed population growth, has contributed to a 1.5% year-over-year decline in wireless service revenue. The company's outlook is further constrained by expectations of lower internet growth, increased postpaid churn, and potential multiple compression under a persistently high interest rate environment, alongside challenges related to supply chain issues and economic uncertainty impacting the wireline segment.