Scotiabank Lowers BCE Price Target to C$39.50, Maintains Outperform

Sajjl Nooranne

Tue, February 17, 2026 at 9:54 PM GMT+9 2 min read

In this article:

BCE

-0.46%

BCEFF

+8.84%

BCEPF

-2.67%

BCEXF

0.00%

BCPPF

+18.18%

We recently published an article titled 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.

On February 6, Scotiabank lowered its price target on BCE Inc. (NYSE:BCE) to C$39.50 from C$40.25 while maintaining an Outperform rating, indicating that despite modest valuation adjustments, the firm continues to view the risk-reward profile favorably.

During its third-quarter 2025 results conference call, BCE Inc. (NYSE:BCE) reported a 1.3% increase in total revenue, supported in part by the acquisition of Ziply Fiber, and adjusted EBITDA growth of 1.5%, resulting in a 10-basis-point margin expansion to 45.7%—the strongest margin performance in over three decades. The company highlighted accelerating momentum in AI-powered solutions, with related revenue increasing 34% year-over-year, largely driven by organic growth from Ateko and Bell Cyber. These developments underscore BCE’s strategic pivot toward higher-value digital and cybersecurity offerings while maintaining stable core telecom operations. The combination of modest top-line growth, margin expansion, and emerging AI-driven revenue streams supports improving cash flow durability and strengthens the long-term investment case.

Founded in 1983 and headquartered in Verdun, Quebec, BCE Inc. (NYSE:BCE) provides wireless, wireline, internet, streaming, and television services to residential, business, and wholesale customers across Canada through its Bell Communications and Technology Services and Bell Media segments.

While we acknowledge the potential of BCE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

**READ NEXT: 8 Up and Coming Streaming Companies and Services and **9 High Growth Canadian Stocks to Buy

Disclosure: None.

Terms and Privacy Policy

Privacy Dashboard

More Info