National Bank Financial analyst Adam Shine says BCE’s (BCE Stock Quote, Chart, News, Analysts, Financials TSX:BCE) near-term setup depends on improved telecom discipline and investor recognition of its Bell AI Fabric opportunity.
Ahead of BCE’s Nov. 5 results, Shine maintained his “Outperform” rating and lowered his target to $36.00 from $38.00, citing pressure on telecom valuations. The average target is $37.76.
Canadian telecom stocks have remained under pressure in 2026 amid aggressive wireless pricing, regulatory headwinds and elevated debt loads.
The sector has been weighed down by deep wireless discounting, slower population growth, higher churn, CRTC changes and expanded MVNO access.
Shine said BCE’s focus is shifting toward greater capital discipline, cost reduction and the emerging Bell AI Fabric opportunity.
BCE shares have fallen about 13% year-to-date and trade near multi-year lows. The stock’s dividend yield is about 6.2%.
In Q2 2026, BCE reported revenue of $6.18-billion, up 1.5% year-over-year, and Adjusted EBITDA of $2.70-billion, up 1.0%. Net debt-to-EBITDA was about 3.7 times.
Those include the company’s Ziply Fiber acquisition in the United States and Bell AI Fabric, which is aimed at supporting sovereign Canadian AI workloads.
The bear case remains intense price competition, elevated debt and pressure on free cash flow from capital spending and financing costs.
Shine said BCE’s results will be watched for evidence of further telecom discipline, balance sheet progress and traction in the company’s AI infrastructure strategy.
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