BCE stock rating upgraded by JPMorgan on Ziply acquisition and improved growth

Published 11/08/2025, 11:36
BCE stock rating upgraded by JPMorgan on Ziply acquisition and improved growth

Investing.com - JPMorgan upgraded BCE Inc. (TSX:BCE) (NYSE:BCE) from Underweight to Neutral on Monday, raising its price target to C$33.00 from C$29.00 following the company’s mixed second-quarter results and recent acquisition. According to InvestingPro data, BCE, with a market capitalization of $22.7 billion, is currently trading below its Fair Value, suggesting potential upside opportunity.

The Canadian telecommunications company showed encouraging mobile phone subscriber growth in Q2 2025, primarily due to better churn rates, though it experienced softer underlying mobile phone average revenue per user (ARPU) excluding a one-time G7 benefit. As a prominent player in the Diversified Telecommunication Services industry, BCE has maintained dividend payments for an impressive 55 consecutive years, with a current dividend yield of 5.2%.

JPMorgan cited recent price increases, rational back-to-school promotions, and carriers’ focus on tiered pricing across the wireless ecosystem as positive factors that should aid recovery in industry ARPUs as repricing pressures ease.

The firm raised its long-term consolidated estimates for BCE to reflect the August 1 closing of the Ziply acquisition, which is expected to improve BCE’s long-term growth profile given Ziply’s estimated EBITDA growth of over 20% year-over-year in 2025.

Despite the upgrade, JPMorgan expressed continued concerns about BCE’s ability to reach 8 million fiber passings long-term given the shrinking white space and the lack of a converged offering.

In other recent news, BCE Inc . announced its Q2 2025 financial results, which showed a mixed performance. The company reported an adjusted earnings per share (EPS) of $0.63, which was below the expected $0.71, resulting in an 11.27% negative surprise. However, BCE’s revenue came in at $6.09 billion, surpassing the anticipated $5.95 billion. These earnings and revenue figures are crucial for investors assessing the company’s financial health. Despite the earnings miss, the revenue beat indicates robust sales performance. No mergers or acquisitions were reported in this period. There were also no analyst upgrades or downgrades mentioned for BCE Inc. in the recent updates. These developments provide investors with an essential view of BCE Inc.’s current financial standing.

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