The Globe and Mail reports in its Friday, Feb. 7, edition that Scotia Capital analyst Maher Yaghi has reaffirmed his "sector perform" call on BCE. The Globe's David Leeder writes in the Eye On Equities column that Mr. Yaghi gave his share target a $2 trim to $40. Analysts on average target the shares at $35.35. Mr. Yaghi says in a note: "Our discussion with investors indicates that the negative reaction in BCE's stock [Thursday] occurred as a reaction to management's negative outlook on Canadian FTTH in the context of the CRTC upholding its view to allow large incumbents to resell fiber out of home. Unless the wholesale rate drops from current levels, we do not believe the impact on financials should be material. What could materially move financials is wireless pricing, which is starting to show some improvement. Management detailed on the call many avenues it is working on to support FCF and the balance sheet, however, until the distribution ratio and the dividend situation is addressed head on, we believe the stock will likely lack momentum to move higher. We have reduced our target as a result of revising our medium term outlook in our DCF valuation from 2.25 per cent to 1.5 per cent."