BCE is now trading at 14.4x times the forward P/E. In the quarter BCE revenue declined slightly by 1% to $6B compared to last year of $6.05B and EPS came at $0.72 or -15% lower than last year's $0.85. The company also confirmed its guidance for FY2024, in which the company expects revenue growth to be in the range of 0%-4%, while adjusted EPS is expected to be down from -7% to -2%, due to the higher interest and depreciation expense from investment in recent years. BCE also reinvested heavily in recent years to grow subscribers which resulted in low single-digit subscriber growth in both retail and mobile markets. Overall, the operating results do not look great here amid the high interest rates environment, but still acceptable. We think the company is a hold or a 'slow accumulate' from here, which could have some upside potential from here given that interest rates may have peaked. Sentiment remains horrible, which at times can set up a bounce.
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