LUMN - Cowen expects few catalysts from telecom services earnings but looks to future

In a preview of telecom services stocks' earnings for the first quarter, Cowen isn't expecting a meaningful catalyst to emerge directly from the reports - but updated its estimates for Lumen Technologies (LUMN -1.2%), and updated its takes on the ratings stack for the sector. Lumen has shown some solid year-to-date outperformance, the firm notes - the stock is up 34% in that time frame - alongside some short covering and brownfield fiber-to-the-home. Notably, while Lumen closed a strategic review on the consumer business in 2019, "we have heard a book has been reopened on the assets, as we consider the business could be placed in the hands of those with deeper pockets, lower WACC, and longer-dated (pension/patient money) capital, meanwhile considering the new $100B Biden plan as a backdrop." It's looking for a second-half-loaded year for Lumen, and now sees Q1 revenues at $5.06B (vs. a previous $5.12B) and

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Cowen expects few catalysts from telecom services earnings, but looks to future