BCE Inc (BCE.TO): Raise 2026 EBITDA to $10.77b on Higher CTS Canada; Ziply Still Soft; Remain Neutral

We update our BCE estimates after solid 3Q results, with management reaffirming all of its 2026 guidance targets. We raise our 2026 consolidated revenue estimate 0.6% to $24.89b (+1.7% y/y vs. guidance of +1-5%) and EBITDA 0.6% to $10.77b (+1.0% y/y vs. guidance of +0-4%). We also raise 2026 FCF to $2.20b (-30.9% y/y vs. guidance of -28% to -34%). FY26 capex is unchanged at $4.99b (in line with guidance), as a 4Q step-up in Bell AI Fabric spending offsets lighter 3Q capex. Based on contracts in hand, and with the first Saskatchewan data hall expected online in 1H27, management believes Bell AI Fabric is on track to become a $500m+ EBITDA business. We like Bell AI Fabric's positioning and BCE's efforts to delever through asset monetization and capital recycling, including the pending sale of a 49.9% stake in its tower business to La Caisse. However, we remain Neutral on BCE shares as we await further AI Fabric contract wins and greater clarity on Ziply's build runway. Our Dec'27 price t