07:28 AM EST, 11/05/2024 (MT Newswires) -- RBC Capital Markets lowered its price target on BCE Inc. ( BCEXF ) (BCE.TO, BCE) to $47 from $52.

Analyst Drew McReynolds maintained a Sector Perform rating on shares of the Canadian media and telecom company.

McReynolds said the reduction in his target price reflects estimate revisions and the near-term dilutive NAV impact from to the acquisition premium in BCE's proposed purchase of Ziply Fiber for $7 Billion.

"Notwithstanding near-term NAV dilution, we believe the Ziply acquisition along with the pause in dividend growth and institution of the DRIP do provide incremental visibility around the balance sheet trajectory and dividend sustainability, and reinforces management's fibre-first strategy," the analyst said in a note to clients.

"While we continue to believe BCE is well equipped to navigate a slower revenue environment leaning on a scale advantage, FTTH investment and Internet market share gains, cost efficiencies, an extensive array of tactical initiatives across wireless, wireline, and media, and long-term growth in 5G B2B (IoT, MEC, private network, cloud, security), we look for more timely entry points with the closing of the MLSE and Ziply transactions, an associated uptick in revenue and EBITDA growth, and greater progress in tracking towards targeted dividend payout and leverage ratios potential catalysts for the stock," McReynolds said.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)