- Analyst Confidence: Scotiabank increased its price target for BCE Inc. (NYSE: BCE) to C$40, maintaining an “Outperform” rating, signaling strong market confidence in the telecommunications stock.
- Strong Q2 Performance: The telecom giant reported robust Q2 2026 results, with adjusted earnings of C$0.65 per share and total operating revenues growing 1.5% to C$6.18 billion, surpassing analyst expectations.
- Undervalued Potential: Despite some challenges, BCE’s stock price of $22.77 is considered “modestly undervalued” compared to its estimated GF Value of $26.88, suggesting potential for future growth.
On August 7, 2026, analyst firm Scotiabank increased its price target for BCE Inc. (NYSE: BCE) to C$40, maintaining an “Outperform” rating. BCE, also known as Bell Canada, is the country’s largest telecommunications company. It provides a wide range of services, including wireless, internet, TV, and operates media properties like Bell Media.
The positive analyst rating follows BCE’s strong second-quarter 2026 performance. The telecom giant reported adjusted earnings of C$0.65 per share, a 3.2% increase from the previous year. This figure also surpassed analyst expectations by 2.2%, showing the company is more profitable than predicted.
Revenue figures also support this positive investment outlook. Total operating revenues for BCE grew 1.5% to C$6.18 billion, beating estimates. As highlighted by Zacks Equity Research, this growth comes from a 4.3% rise in service revenue, contributions from the Ziply Fiber acquisition, and an 8.9% revenue increase from its Bell Media division.
However, the telecommunications provider faces some challenges. Product revenue declined by 16.3%, and free cash flow, which is the cash left after paying for operations and investments, decreased by 9.5%. This drop in cash flow is due to a 41.5% increase in capital spending on projects like the Bell AI Fabric and Ziply Fiber.
According to GuruFocus, BCE’s stock price of $22.77 is considered “modestly undervalued” compared to its estimated GF Value of $26.88. This suggests there may be room for the telecom stock’s price to grow. The company also has a GF Score of 64 out of 100, indicating an above-average overall quality.
