11:14 AM EST, 11/05/2024 (MT Newswires) -- National Bank has cut its target on BCE to $42 (from $48) after the telco announced it was acquiring U.S.-based Zipley Fiber.

"There were always going to be concerns that Bell in future, after delevering with non-core sales and completing key part of its fibre build next year, could pursue an acquisition that wouldn't please some investors. We just didn't think this would happen in final part of 2024, with an expensive U.S. foray that won't be FCF accretive until after 2028 and will elicit ongoing questions of "why" despite Bell's strategic rationale for doing this deal now," said analyst Adam Shine.

Add to this the fact that growth is slowing in Bell's domestic market, Shine points out.

Reiterate Sector Perform.

Price: 39.86, Change: -0.61, Percent Change: -1.51