Bank of America Securities analyst Michael Funk reiterated a Sell rating on Lumen Technologies yesterday and set a price target of $7.00.
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Michael Funk has given his Sell rating due to a combination of factors tied to Lumen Technologies’ outlook and risk profile. While the company highlighted an ambitious growth strategy centered on its extensive fiber footprint, cloud interconnection, and a new digital platform, the pathway to materially higher revenues is pushed out to around 2028, leaving several years of continued business pressure.
The company itself anticipates that its traditional “Grow” and “Legacy” businesses will keep shrinking through 2029, with newer Private Connectivity Fabric and digital streams only gradually becoming large enough to offset those declines. Given this long runway, the substantial execution risk in scaling these newer offerings, and the use of a discounted valuation multiple versus peers, Funk believes the downside and uncertainty outweigh potential upside, supporting his Sell (Underperform) stance at a $7 price objective.
In another report released on February 13, TipRanks – Anthropic also reiterated a Sell rating on the stock with a $7.50 price target.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LUMN in relation to earlier this year.