Analysts Recommend “Hold” for BCE Inc. Amid Price Target Adjustments
BCE Inc. has received an average rating of “Hold” from analysts following the company, according to a report by MarketBeat Ratings. Out of the twelve research firms covering BCE, two analysts have rated the stock as a sell, five have issued a hold rating, four have provided a buy rating, and one has given a strong buy rating. The consensus among analysts indicates an average one-year price target of C$36.23.
Analysts have recently shared varying insights on BCE’s stock performance. CIBC raised its price target from C$36.00 to C$37.00, maintaining a “neutral” rating in a note published on October 15, 2023. National Bankshares established a target price of C$35.00, awarding the company an “outperform” rating in their report dated August 12, 2023.
Desjardins has increased its target price from C$41.00 to C$42.00 and assigned it a “sector perform” rating in a note released on November 7, 2023. Meanwhile, the Royal Bank of Canada upgraded BCE from a “sector perform” rating to “outperform,” raising their price target from C$35.00 to C$47.00 on the same date as CIBC’s update. Scotiabank also adjusted its price target, increasing it from C$39.50 to C$41.50 and maintaining an “outperform” rating in a report published on September 8, 2023.
BCE Reports Earnings and Declares Dividend
On November 6, 2023, BCE announced its quarterly earnings results, reporting earnings per share (EPS) of C$0.79. The company recorded a net margin of 1.10% and a return on equity of 1.39%. Quarterly revenue reached C$6.05 billion. Analysts project that BCE will achieve an EPS of approximately C$3.11 for the current fiscal year.
Additionally, BCE has declared a quarterly dividend of $0.4375, scheduled for payment on January 15, 2024. Shareholders on record as of this date will receive this dividend, which translates to an annualized dividend of $1.75 and a yield of 5.4%. The ex-dividend date is set for December 15, 2023. BCE’s current dividend payout ratio stands at 43.09%.
About BCE Inc.
BCE Inc. operates as both a wireless and internet service provider in Canada, offering a range of services that include wireless, broadband, television, and landline phone options. As one of the country’s major wireless carriers, BCE serves approximately 10 million customers, representing about 30% of the market share. The company also functions as the incumbent local exchange carrier (ILEC) throughout much of eastern Canada, notably in the populous provinces of Ontario and Quebec.
This comprehensive performance and adjustment in ratings reflects BCE’s ongoing position within the telecommunications sector and the strategies employed by analysts to evaluate its financial health.
