Michael Rollins, an analyst from Citi, maintained the Buy rating on Lumen Technologies. The associated price target is $6.00.
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Michael Rollins has given his Buy rating due to a combination of factors including Lumen Technologies’ positive strides in operational and financial restructuring. Despite a slight decline in business revenue, the company’s core financial performance exceeded expectations, with an impressive EBITDA figure. The recent share price movement does not reflect the underlying improvements, suggesting potential for a near-term price increase.
Additionally, Lumen’s management is taking a conservative approach to guidance, focusing on reducing net debt leverage faster than anticipated. The company’s efforts to enhance revenue share in the business and wholesale wireline category, alongside potential opportunities in software-defined networking, further support the Buy rating. These strategic moves, coupled with the potential for significant PCF sales, indicate a promising outlook for Lumen Technologies.
In another report released on August 1, Raymond James also maintained a Buy rating on the stock with a $5.00 price target.