Gregory Williams, an analyst from TD Cowen, maintained the Hold rating on Lumen Technologies. The associated price target was raised to $8.00.
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Gregory Williams has given his Hold rating due to a combination of factors influencing Lumen Technologies’ current and future performance. The company has shown positive results in the third quarter of 2025, with increased revenue, EBITDA, and free cash flow, while maintaining its guidance for 2025. However, the performance across different segments has been mixed, with strengths in the Large Enterprise and Public Sector, but weaknesses in the Wholesale segment.
Despite recent wins in Product and Customer Financing (PCF) deals, which contribute to a significant pipeline, these are not expected to drive immediate revenue growth due to their static nature. The anticipated revenue inflection is more likely to come from the stabilization of legacy declines and growth in digital products, which are projected to contribute significantly by 2028. The company’s confidence in reaching a business revenue inflection by 2028 is supported by the current mix of ‘grow’ products and the potential of ‘Lumen Digital’ offerings. Nevertheless, the need for more detailed insights, expected at the upcoming February Investor Day, contributes to the Hold rating.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $11.00 price target.