BCE (BCE) Stock Forecast & Price Target

BCE is poised for improved performance in the latter half of 2026, driven by the resumption of fiber deployment and strategic expansion into Western Canada, supporting anticipated revenue and adjusted EBITDA compound annual growth rates of 1-2% from 2025 to 2028. The company is expected to achieve a 7% growth in free cash flow (FCF) in 2026, reaching $3.4 billion, alongside a more significant 16% increase in FCF after lease liabilities, suggesting robust operational efficiency and performance. Furthermore, with a focus on accelerating Internet adoption and enhanced business market activity, along with reduced churn and improved wireless average revenue per user (ARPU), BCE's risk profile has improved, providing a favorable outlook for future earnings stability and growth.

BCE's stock outlook is negatively impacted by a significant decline in its non-fiber high-speed internet subscriber base, with losses averaging 4-5K customers per quarter, representing a 7-9% decrease quarter-over-quarter. Furthermore, cash generation is projected to have a minimal impact on reducing leverage, with only a 0.1x reduction anticipated by 2026 on an organic basis. Additionally, factors such as supply chain issues and economic uncertainty are likely to strain the wireline segment, compounded by a slower rate of net additions and deteriorating performance expectations linked to postpaid churn and wireless Average Revenue Per User (ARPU) growth.