Lumen Technologies, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Gregory Williams from TD Cowen maintained a Hold rating on the stock and has a $7.00 price target.
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Gregory Williams has given his Hold rating due to a combination of factors surrounding Lumen Technologies’ strategic plans and financial outlook. The company has laid out a roadmap aimed at serving the evolving Cloud 2.0 and AI economy, which includes building a network capable of supporting a wide range of technologies and customer needs. While these plans are promising, the anticipated revenue and EBITDA growth are not expected until around 2029, which suggests a longer-term horizon for significant financial improvements.
Additionally, the sale of FTTH assets to AT&T could delay the expected revenue inflection, although accelerated AI services might bring this timeline forward. There is also a recent deal with Anthropic that could contribute positively to Lumen’s backlog, but the overall impact remains uncertain. Given these mixed signals, Williams believes that a Hold rating is appropriate as investors await more concrete signs of sustainable financial performance improvements.
According to TipRanks, Williams is a 2-star analyst with an average return of 0.4% and a 43.71% success rate. Williams covers the Communication Services sector, focusing on stocks such as T Mobile US, Echostar, and Verizon.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $6.50 price target.