BCE (BCE) Stock Forecast & Price Target

BCE is expected to report a free cash flow (FCF) growth of 7% in 2026, reaching $3.4 billion, with FCF after lease liabilities projected to grow by 16% to $2.4 billion. The company is well-positioned to capitalize on growth in the Enterprise segment, alongside the potential for market expansion driven by its fiber footprint and the ongoing AI/cloud migration trend, which could contribute to an ambitious $2 billion revenue target from AI solutions by 2028. Additionally, BCE's stable capital expenditures, despite the inclusion of new ventures like Ziply, are anticipated to facilitate strong flow-through of EBITDA increases into FCF, further enhancing financial performance.

BCE's stock outlook is negatively impacted by a significant decline in its non-fiber high-speed internet subscriber base, which has recorded a quarterly drop of approximately 7-9%, translating to losses of around 4-5K subscribers each quarter. Additionally, the company's cash generation, after accounting for dividend payments, is projected to only marginally decrease leverage by 0.1x through 2026, indicating limited financial improvement. External challenges, including supply chain issues and economic uncertainty, further exacerbate pressures on BCE's wireline segment, leading to increased visibility concerns regarding its key performance indicators.