Mar. 25 at 9:13 PM
$BCE TD Cowen analyst Vince Valentini has raised his price target on BCE (BCE Stock Quote, Chart, News, Analysts, Financials TSX:BCE) to
$41.00 from
$40.00 while maintaining a “Buy” rating, citing the potential returns from the company’s planned artificial intelligence data centre project in Saskatchewan.
In a March 17 report, Valentini said BCE’s proposed 300-megawatt AI data centre near Regina offers an “attractive” return profile and supports higher long-term financial forecasts.
“We are positive on this under promise and overdeliver execution,” he said.
Following the March 16 announcement, BCE updated its outlook to include
$1.3-billion in incremental capital spending, with expectations for the project to generate
$500-million in annual revenue and
$400-million in EBITDA on a run-rate basis by the end of 2027.
Valentini said the new project prompted him to raise his 2028 revenue, earnings and free cash flow estimates, with the valuation impact reflected in his updated price target.
