edge cloud
Search documents
Citi Lowers Lumen (LUMN) Price Target, Raymond James Downgrades
Yahoo Finance· 2026-02-16 12:41
Core Viewpoint - Lumen Technologies, Inc. is facing challenges following the sale of its Mass Markets fiber-to-the-home business to AT&T, which has impacted its financial outlook and growth trajectory [2][3]. Group 1: Financial Performance and Ratings - Citi has reduced its price target for Lumen Technologies from $11 to $10 while maintaining a Neutral rating, citing mixed fourth-quarter results [1]. - Raymond James downgraded Lumen's rating from Outperform to Market Perform after the sale of its fiber business for $5.75 billion, which significantly reduced total debt by over $4.8 billion and net leverage to below 4x [2]. Group 2: Strategic Challenges - Following the completion of the sale, Lumen Technologies is restructuring its balance sheet but faces new challenges, particularly regarding its revenue growth, which may take about two years to recover [3]. - The appointment of the third head of sales in three years raises concerns about the company's ability to restore growth effectively [3]. Group 3: Company Overview - Lumen Technologies, Inc. is an American telecommunications and technology company that provides networking, edge cloud, collaboration, and cybersecurity solutions [4].