BCE Shares Rise Following Upgrade to Buy from Desjardins

BCE shares rose after an upgrade from Desjardins to "Buy" from "Hold," with a price target of CAD 40. The upgrade followed BCE's completion of its $5 billion acquisition of Ziply Fiber. BCE also completed the sale of its minority stake in Maple Leaf Sports and Entertainment to Rogers Communications for $4.7 billion.

BCE Inc. (TSE: BCE) shares experienced a notable increase following an upgrade from "Hold" to "Buy" by Desjardins. The upgrade, announced on July 30, 2025, was accompanied by an adjusted price target of CAD 40. This upgrade comes on the heels of BCE's significant acquisition of Ziply Fiber and the sale of its minority stake in Maple Leaf Sports and Entertainment (MLSE).

On August 1, 2025, BCE completed the $5 billion acquisition of Ziply Fiber, expanding its fiber Internet footprint into the U.S. by 1.4 million locations. This acquisition, in partnership with the Public Sector Pension Investment Board (PSP Investments), positions BCE as the third-largest fiber Internet provider in North America [1]. Additionally, BCE sold its minority stake in MLSE to Rogers Communications for $4.7 billion, which was used to finance the Ziply Fiber acquisition [2].

The Ziply Fiber acquisition is part of BCE's strategic growth initiatives, aiming to leverage the U.S. market's potential. By combining Bell's deep fiber expertise with Ziply Fiber's experienced management team, BCE aims to enhance its fiber network and customer value both in Canada and the U.S. [3].

Desjardins' upgrade reflects a positive outlook on BCE's strategic direction and financial prospects. The analyst firm noted the company's strong cash flow and strategic growth initiatives in the U.S. fiber market, albeit with concerns about high leverage and valuation [1].

BCE's latest acquisitions and strategic moves underscore its commitment to expanding its fiber Internet footprint and enhancing its market position. As BCE continues to update its financial guidance to reflect these transactions, investors will closely monitor the company's performance and potential future growth opportunities.

References:
[1] https://www.marketscreener.com/news/bce-shares-rise-after-upgrade-from-desjardins-ce7c5ed8dc8cf125
[2] https://www.theglobeandmail.com/investing/markets/stocks/BCE/pressreleases/33838685/bce-expands-us-presence-with-ziply-fiber-acquisition/
[3] https://www.marketscreener.com/news/bce-completes-acquisition-of-ziply-fiber-accelerating-its-fibre-growth-strategy-ce7c5fd3d88cff27