2024-07-09 16:02:07 ET
Summary
- Lumen Technologies, Inc.'s share price has fallen rapidly over the last few quarters following underperformance and disappointing guidance.
- Lumen holds a sizeable asset portfolio worth more than double the current market cap even at a conservative M&A premium.
- With downside risks mitigated and a price target of $1.22, I have raised my rating from sell to buy.
I am updating my ongoing analysis on Lumen Technologies, Inc. (LUMN). I had previously rated Lumen a sell for the following reasons:
- Growth in every segment, except the public sector, was lagging the overall telecom industry
- The 2025 growth strategy was not delivering any results, in fact, business continued to decline
- Discounted cash flow ("DCF") analysis generated a price target of $1.23 signaled 20% downside.
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For further details see:
Lumen Technologies Undervalued Even Without Turnaround (Rating Upgrade)