Barclays moved BCE from an Underweight rating to Equalweight on Tuesday and raised its 12-month price target to $26.00 from $21.00, citing what it perceives as an improving competitive landscape in the Canadian telecommunications market.
The bank noted that the revised target reflects a higher valuation multiple - 7x estimated 2026 EBITDA versus the prior 6.6x - and that the change in stance follows a view of increased long-term optionality that could provide valuation support. Barclays converted a Canadian-dollar price target of CAD$35 to USD$26 using a 0.73 CAD/USD exchange rate.
Market-level metrics highlighted in the note remain stark: the stock is trading around $25.15, placing it just below Barclays' new target. The firm also pointed to potential upside for Canadian asset valuations as geopolitical risk considerations alter asset-allocation decisions.
Barclays' research callout included company-specific income details. BCE currently yields 5.05% in dividends, has sustained distributions for 55 consecutive years and trades at a modest price-to-earnings ratio of 5.18, according to the note. Those income characteristics informed the broker's analysis of relative value in the sector.
The same research maintained an Equalweight rating on Telus, with Barclays warning that Telus "faces additional risks from its non-core telecom verticals, which are more macro exposed." That comparison illustrates Barclays' view of differentiated risk profiles across large Canadian telecom operators.
Investors are reminded in the research note that BCE is scheduled to report earnings on February 5 - described in the note as just 9 days away - a near-term catalyst that could recalibrate expectations.
Other broker activity has also shifted sentiment on BCE. RBC Capital raised its price target from C$37.00 to C$38.00 while keeping an Outperform rating. RBC's upward revision is grounded in expectations for gradual revenue and adjusted EBITDA growth beginning in 2026, driven by operational segments identified in the note including Ziply, Enterprise and Bell Media.
BMO Capital Markets has likewise moved to a more favorable view, upgrading BCE from Market Perform to Outperform and pointing to an improved risk/reward profile. BMO continues to model a 2% year-over-year increase in BCE's Canadian wireless and wireline service revenue.
Taken together, the recent broker actions reflect a cluster of analyst views that have grown more constructive on BCE's prospects, citing both near-term rate-based valuation considerations and medium-term operational contributors to revenue and adjusted EBITDA.
Summary observations from the note include Barclays' emphasis on competitive improvement in the Canadian telecom market and a quantified increase in valuation multiple, the conversion of the CAD target using the 0.73 exchange rate, and the reminder of BCE's upcoming earnings report on February 5. Additional broker moves from RBC and BMO underline the broader analyst reappraisal of BCE's outlook.