BCE (BCE) Stock Forecast & Price Target

BCE has demonstrated positive financial momentum, with a 3.3% year-over-year growth in Internet revenue and a notable increase in residential Internet customers on fiber-to-the-home (FTTH) services, which rose by 10% year-over-year. Additionally, there has been a significant increase in digital revenue at Bell Media, which grew by 6.0% year-over-year in Q4/24, reflecting a successful strategy as digital revenues now constitute 42% of total media revenues. The current firming of Internet and wireless pricing environments, along with anticipated improvements in postpaid churn and average revenue per user (ARPU), indicates a promising outlook for BCE's operational performance and overall financial health.

BCE's stock faces a negative outlook primarily due to a decline in blended phone Average Revenue Per User (ARPU), which fell 2.7% amid ongoing promotional pressures that have kept industry pricing low. Additionally, the company is experiencing reduced year-over-year net additions in postpaid subscriptions and an overall wireless service revenue decline of 1.5%, compounded by sluggish population growth affecting gross activations. The expectation of lower Internet growth, deterioration in the business market, and potential increases in postpaid churn further contribute to concerns about BCE's financial performance in a challenging economic environment characterized by sustained higher interest rates.