BCE Should I Buy
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BCE Inc is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available. The stock shows mixed signals, with no significant positive catalysts, weak technical indicators, and a lack of strong trading signals. While the dividend appears stable and the company has shown improvement in net income and EPS, the overall growth prospects remain under pressure due to structural headwinds and declining revenue. A hold position is recommended for now.
The technical indicators are mixed. The MACD is negative and expanding downward, indicating bearish momentum. RSI is neutral at 46.192, suggesting no clear overbought or oversold condition. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading below the pivot point (25.822), with key support at 25.511. Overall, the technical analysis does not strongly support a buy decision.
Analysts have raised price targets recently, and the dividend appears stable with reasonable free cash flow payout ratios.
Revenue dropped by -0.28% YoY in Q4 2025, and gross margin fell significantly. Structural headwinds in the Canadian telecom market and pressure in broadband loading continue to weigh on growth. Technical indicators are not strongly bullish, and no significant trading signals are present.
In Q4 2025, BCE's revenue declined slightly by -0.28% YoY to $6.404 billion. However, net income increased significantly by 28.85% YoY to $594 million, and EPS rose by 25.49% YoY to 0.64. Despite these improvements, the gross margin dropped to 0, down -100% YoY, which is a major concern.
Analysts have mixed ratings on BCE. TD Securities raised the price target to C$40 and maintained a Buy rating, while JPMorgan raised the target to C$37 but kept a Neutral rating. Canaccord raised the target slightly to C$35 but noted mixed Q4 results and structural pressures. Scotiabank lowered the price target slightly to C$39.50 but maintained an Outperform rating. Overall, analysts are cautiously optimistic but highlight ongoing challenges in growth.
