Lumen Technologies (LUMN) stock lit up on Monday after Raymond James analyst Frank Louthan upgraded the communication services company’s shares. The analyst bumped LUMN stock up from Market Perform to Outperform and set a $4.50 price target for the shares. This represents a potential 10.84% upside for the stock.
Louthan believes the sale of Lumen Technologies’ fiber-to-the-home assets and customers could be a huge catalyst for LUMN stock. When this deal is closed, it could result in “a series of financial events and refinancing could unfold that we believe would drive equity value.”
LUMN Stock Movement Today
The analyst upgrade excited Lumen Technologies shareholders on Monday. That resulted in a 7.28% rally for LUMN stock, a welcome change from its 23.63% drop year-to-date. However, trading remains muted today with 6.59 million shares exchanged, compared to a three-month daily average of 14.22 million units.
While today’s analyst upgrade and rally might make LUMN stock a tempting investment for traders, there are significant dangers to consider. Lumen Technologies current share price of $4.06 has it in penny stock territory. That opens it up to additional volatility and easier manipulation than more surefooted shares.
Investors will also note that some analyst have incredibly bearish stances on LUMN stock. Take Bank of America’s David Barden, who has a Sell rating and $2 price target, representing a potential 50.74% downside for Lumen Technologies. However, his rating and price target fall just outside of TipRank’s three-month analyst consensus window.
Is LUMN Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Lumen Technologies is Moderate Buy, based on two Buy and three Hold ratings over the last three months. With that comes an average price target of $5.15, representing a potential 26.85% upside for LUMN stock.
