BCE Earnings: Mixed Results, With Cost Pressures That Don't Affect Our Long-Term View

BCE’s first quarter was not impressive on the top line, and bottom-line results were poor. However, we hold a more positive view on the areas that we believe are most important to the firm, notably the progress with fiber broadband subscribers and steady—albeit lackluster—performance in wireless. We are maintaining our CAD 67/$50 fair value estimate and find BCE’s peers more attractive at current levels. However, if the disappointing first-quarter results spur a selloff, we’d see it as an opportunity, as we remain confident in BCE’s long-term prospects.