5 Stocks That Analysts Are Bearish On

3. BCE Inc. (NYSE:BCE)

BCE Inc. has struggled over the past year. The stock is down 47% so a downgrade by Bank of America, which lowered its Neutral rating to Underperform on the stock, doesn’t cause much more of a headache for investors. The reasons for the downgrade should worry investors though.

BofA sees growth headwinds for the stock. It is true that the industry peers also don’t have a favorable outlook but the concerns regarding BCE are much more pronounced. The firm’s dividend is in danger and there is high leverage that the company management is finding hard to tackle. BCE has a solid history of growth and that’s one reason why investors have preferred the stock in the past. However, the current dividend yield of over 13% isn’t sustainable and a dividend cut would spook investors. In such a scenario, an upside is unlikely to play out, even though the stock still has a price target of $36, a 55% upside from current levels.