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Investing.com - Goldman Sachs has assumed coverage on Lumen Technologies (NYSE:LUMN) with a Neutral rating and a price target of $4.10. The stock currently trades at $4.97, with analyst targets ranging from $2.00 to $8.33. According to InvestingPro data, the stock has shown strong momentum, posting positive returns over both one-month and three-month periods.
The investment bank notes that Lumen is undergoing a multi-step business turnaround focusing on enterprise services, including the proposed sale of its consumer fiber business to AT&T, balance sheet de-leveraging, cost-saving initiatives, and improving its go-to-market strategy.
Goldman Sachs expressed "low levels of conviction" in its rating due to Lumen’s ongoing revenue declines, with management targeting 2029 as the year revenue will turn positive.
The firm indicated it would need "more confidence revenue can grow" before taking a more bullish stance on the stock.
Lumen is scheduled to hold an Investor Day in February 2026, where Goldman Sachs expects new revenue disclosures, updates on cost transformation, and capital allocation information including leverage expectations and free cash flow.
In other recent news, Lumen Technologies reported its second-quarter 2025 earnings, showing a narrower-than-expected loss per share of $0.03, which was significantly better than the anticipated loss of $0.25 per share. However, the company’s revenue slightly missed expectations, coming in at $3.09 billion compared to the forecasted $3.11 billion. In addition to its earnings report, Lumen announced an expansion of its high-speed connectivity services across 16 metro markets and more than 70 third-party data centers in the U.S., offering speeds of up to 400 gigabits per second. This expansion aims to meet the growing enterprise demand for artificial intelligence and multi-cloud deployments.
Furthermore, Lumen Technologies has appointed Sean Alexander as Senior Vice President of Connected Ecosystems, where he will focus on strategic partnerships and new revenue streams. The company also achieved a milestone by surpassing 1,000 customers on its Network-as-a-Service platform, which allows businesses to digitally connect applications with ease. These developments come as Lumen continues to enhance its network infrastructure and expand its service offerings.
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