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BCE Inc. Message Board

  • subaru22256 subaru22256 Aug 10, 2009 2:55 AM Flag

    TD ups BCE target to C33 from C31

    Excerpted from TD Newcrest research report

    Event
    BCE reported Q2/09 results and increased revenue/EBITDA/EPS guidance
    for 2009, plus a 5% dividend increase to $1.62.
    Impact
    POSITIVE. We maintain our BUY rating on BCE shares, with our
    target price increased to $33.00 from $31.00 owing to both increased
    forecasts and the passage of time. Success on cost-cutting has allowed us to
    increase our wireline EBITDA forecasts (in line with new guidance of 1-2%
    EBITDA growth for Bell, versus flat previously), while our wireless EBITDA
    for 2009 and 2010 has been trimmed slightly owing to weak subscriber adds
    and ARPU in Q2/09. Our 2009 EPS estimate has been increased to $2.48
    from $2.45, and we expect a healthy increase in the pre-quarter consensus of
    $2.38 now that management is guiding to $2.40-$2.50. We also expect upside
    to street estimates for 2010 over the next six months, as the company provides
    clarity on the proportion of 2009 tax benefits that will recur in 2010. In
    addition, we believe some analysts are underestimating the potential for a
    cyclical recovery in some segments of Bell, most notably discretionary
    wireless ARPU, SMB demand, and pension costs if asset returns improve
    with the market.
    Details
    Second Quarter Results: EPS of $0.58 (+9% y/y) was a penny above

 
BCE
46.07-0.01(-0.02%)Jun 27 4:06 PMEDT