BCE (BCE) has an increasingly positive long-term growth outlook for AI-powered solutions within Bell Business Markets, RBC Capital Markets said.
Management believes wireless pricing and promotional activity normalized in April through mid-May, with such normalization expected to continue through 2026 as the company focuses on the Bell brand, bundling, and product intensity, the investment firm said in a Monday research report.
The company indicated that momentum continues to build toward its CA$2 billion revenue target for AI-powered solutions by 2028 as it remains committed to disciplined capital deployment into Bell AI Fabric.
The company is fully incentivized to maximize free cash flow and meet de-levering targets, according to the note.
RBC reiterated its outperform rating on the stock with a price target of CA$39 ($28.33).
Shares of BCE were up 1.4% in Tuesday trading.
Price: 24.15, Change: +0.33, Percent Change: +1.39
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