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Research Alert: CFRA Maintains Hold Opinion On Shares Of Bce Inc.

· 02/07/2021 18:24

11:20 PM EST, 02/07/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target at USD46, 18.5x our '21 EPS estimate, a premium to its 5-year forward average P/E at 16.2x, reflecting better than expected results. We trim our '21 EPS estimate by CAD0.16 to CAD3.17 and set '22's at CAD3.41. BCE reported Q4 operating EPS of CAD0.81 vs. CAD0.88, CAD0.05 above the consensus. Q4 revenue declined 2.8%, with a 1.9% drop in wireless, on lower service and product sales, a 1.3% decline in wireline, driven by an 11.5% fall in equipment revenue due to lower sales to enterprise customers, and a 10.0% drop in media. The wireless segment reported 93k postpaid net additions (down from 122k in the prior-year period) and 12k prepaid net losses (vs. 2k additions), while the wireline segment added 45k retail internet customers (vs. 36k additions). BCE announced a 5.1% dividend hike, as well as a USD1-USD1.2 bln accelerated capital investment program to expand its fiber footprint over the next two years, which will be funded by the proceeds from the recent sale of its data centers.