BCE (BCE) Stock Forecast & Price Target

BCE is expected to see notable improvements in free cash flow (FCF), projecting a growth of 7% in 2026 to reach $3.4 billion, alongside a 16% increase in FCF after lease liabilities, indicating strong financial stability and performance. The company's strategy to expand its fiber deployment and enhance its presence in Western Canada, along with expected positive trends in postpaid churn and wireless average revenue per user (ARPU), contributes to a more favorable growth outlook. Additionally, the improved growth and risk profile, supported by diversified revenue drivers and increased earnings visibility, positions BCE for potential incremental gains in the Enterprise segment and overall market standing.

The provided excerpts indicate several fundamental concerns about BCE's stock, primarily stemming from significant subscriber losses in its non-fiber high-speed internet segment, with a decline of 7-9% quarter-over-quarter translating to an estimated loss of 4-5K subscribers per quarter. Additionally, projected cash generation post-dividend payments is expected to only marginally reduce leverage, suggesting limited financial flexibility in the face of anticipated economic challenges, such as supply chain issues and increasing interest rates. The overall outlook for BCE’s market performance could be further hampered by deteriorating metrics in both wireline and wireless segments, including postpaid churn and average revenue per user (ARPU) growth, compounding the uncertainty surrounding its growth trajectory.