BCE (BCE) Stock Forecast & Price Target

BCE has demonstrated strong performance in its postpaid net additions and residential Internet customer growth, with a 3.3% year-over-year increase in Internet revenue and a 10% rise in FTTH customer base. The company's media segment also reported positive trends, with digital revenue growth at 6.0% year-over-year in Q4/24 and a significant increase in Crave subscribers, indicating a successful adaptation to changing media consumption habits. Additionally, improvements in pricing environments for both Internet and wireless services, along with anticipated advancements in postpaid churn and ARPU, contribute to a favorable outlook for BCE's future financial performance.

BCE is facing significant challenges reflected in its recent financial performance, with blended phone ARPU declining by 2.7% due to heightened promotional activity, resulting in lowered industry prices. The company is experiencing a year-over-year wireless service revenue decline of 1.5%, exacerbated by reduced net additions in postpaid subscribers linked to slowed population growth and lower gross activations. Furthermore, there are concerns regarding deteriorating growth in wireline data and increased postpaid churn in a potentially prolonged high-interest rate environment, which may pressure both volume and pricing across its services.