Citi Lowers Lumen (LUMN) Price Target, Raymond James Downgrades

Lumen Technologies, Inc. (NYSE:LUMN) is one of the 15 AI Stocks That Are Skyrocketing. On February 5, Citi reduced its price target on Lumen Technologies, Inc. (NYSE:LUMN) from $11 to $10 and maintained its Neutral rating on the stock. The research firm sees the company’s fourth-quarter results as mixed.

On February 4, Raymond James downgraded its rating on Lumen Technologies, Inc. (NYSE:LUMN) from Outperform to Market Perform. This update comes after the company’s sale of its Mass Markets fiber-to-the-home business to AT&T Inc. (NYSE:T) for $5.75 billion, which reduced total debt by more than $4.8 billion and net leverage by a full turn to below 4x.

Raymond James pointed out that now that the sale has closed and Lumen Technologies, Inc. (NYSE:LUMN) is working to restructure its balance sheet, it faces new challenges. The research firm expressed concerns about the company’s revenue trajectory, saying that a return to revenue growth may still be about two years away.

Additionally, Raymond James noted that Lumen Technologies, Inc. (NYSE:LUMN) has appointed its third head of sales in three years, which could slow the restoration of growth.

Lumen Technologies, Inc. (NYSE:LUMN) is an American telecommunications and technology company that offers networking, edge cloud, collaboration, and cybersecurity solutions.

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Disclosure: None. This article is originally published at Insider Monkey.