Raymond James Upgrades Lumen (LUMN) Rating to Outperform

Lumen Technologies, Inc. (NYSE:LUMN) is one of the 11 Best US Stocks to Invest in Under $5. On May 5, Raymond James analyst, Frank Louthan, upgraded the firm’s rating on Lumen Technologies, Inc. (NYSE:LUMN) from “Market Perform” to “Outperform” and set a price target of $4.50.

This decision comes amid expectations that Lumen Technologies, Inc. (NYSE:LUMN) will see important changes over the next six to nine months that could increase the company’s equity value. Louthan suggests that the main reason for this positive outlook is the expected sale of the company’s Fiber-to-the-Home (FTTH) assets and customers.

Close-up of a technician’s hands adjusting a communication router.

According to the analyst, selling these assets could greatly improve Lumen Technologies, Inc.’s (NYSE:LUMN) financial situation. It could reduce the company’s financial leverage by as much as a full turn. Louthan expects that the after-tax proceeds from the sale could be a game-changer for the company.

Additionally, the analyst expects that after the sale of its FTTH assets, Lumen Technologies, Inc. (NYSE:LUMN) could benefit from a series of financial events and refinancing opportunities. This could help raise the value of the company’s stock further.

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

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