BCE (BCE) Stock Forecast & Price Target

BCE is poised for significant financial growth, with projected free cash flow (FCF) increasing by 7% to reach $3.4 billion in 2026, and FCF after lease liabilities expected to rise by 16% to $2.4 billion. The company's strategic focus on enhancing its fiber deployment and capitalizing on opportunities within the Enterprise segment positions it well to capture additional revenue streams, particularly as it aligns with the ongoing AI and cloud migration trends. Furthermore, BCE's stable capital expenditure profile ensures effective conversion of EBITDA growth into free cash flow, which underpins a robust outlook for the company's financial performance in the coming years.

BCE is experiencing a significant decline in its non-fiber high-speed internet subscriber base, with a quarterly drop of 7-9%, equating to approximately 4-5K subscribers lost each quarter. Despite adding 15,000 high-speed fiber-to-the-premises (FTTP) subscribers in two quarters, this growth is overshadowed by ongoing issues, including supply chain disruptions and economic uncertainty, which could adversely affect wireline services. Furthermore, the company's cash generation is projected to make minimal progress in reducing leverage, indicating potential challenges in sustaining financial health in the coming years.