JPMorgan Upgrades BCE to Neutral on Ziply Deal Closure

JPMorgan upgraded BCE to Neutral from Underweight with a price target of C$33. The company reduced its 2025 legacy EBITDA guidance, but JPMorgan increased BCE's long-term consolidated estimates to reflect the closing of the Ziply deal. The firm believes the deal will improve BCE's long-term growth profile.

In a significant move, JPMorgan has upgraded its rating for BCE (Bell Canada Enterprises) to Neutral from Underweight, adjusting the price target to C$33. The financial institution cited the company's recent acquisition, known as the Ziply deal, as a catalyst for long-term growth and profitability. Despite a reduction in the 2025 legacy EBITDA guidance, JPMorgan has increased BCE's long-term consolidated estimates to reflect the deal's positive impact [1].

The Ziply acquisition is expected to enhance BCE's long-term growth profile by expanding its market reach and operational efficiency. JPMorgan's analysts believe that the deal will bring about strategic benefits, including increased revenue streams and cost synergies. The firm remains optimistic about BCE's ability to capitalize on these opportunities, despite the current market conditions.

The revised financial outlook underscores JPMorgan's confidence in BCE's strategic direction and its potential to navigate the competitive telecommunications landscape. The upgrade to Neutral reflects a balanced view of the company's current performance and its long-term prospects.

For investors and financial professionals, this upgrade signals a shift in sentiment towards BCE, driven by the anticipated benefits of the Ziply acquisition. As BCE continues to execute its strategic initiatives, market participants will be closely monitoring the company's performance and the impact of the deal on its financial metrics.

References:
[1] https://www.marketscreener.com/news/jpmorgan-adjusts-price-target-on-becton-dickinson-and-company-to-190-from-185-maintains-neutral-ce7c5eddda8ff524