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Investing.com - Raymond James raised its price target on Lumen (NYSE:LUMN) to $10.00 from $5.00 on Thursday, maintaining an Outperform rating following the company’s third-quarter results. This comes despite Lumen’s stock taking a significant 21.85% hit over the past week, though it has posted an impressive 94.76% gain over the last six months.
The investment firm identified the closing of Lumen’s mass-markets sale to AT&T as the critical factor for share appreciation, followed by the subsequent reshaping of the balance sheet.
Raymond James noted that beyond the asset sale, Lumen’s return to top-line growth would be the next factor needed to drive broader investor support.
The firm expressed confidence that the pending debt-to-equity shift for Lumen will continue to drive value for the company.
Raymond James expects Lumen to reduce leverage by paying down all of its high-coupon super-priority debt next year after the asset sale closes.
In other recent news, Lumen Technologies reported its third-quarter 2025 earnings, showing mixed financial results. The company achieved an earnings per share (EPS) of -$0.20, which was better than analysts’ expectations of -$0.26, representing a 23.08% earnings surprise. Despite this positive earnings surprise, concerns arose due to a decline in revenue and uncertain future guidance. Additionally, the stock experienced a decline in after-hours trading. These developments have caught the attention of investors looking for stability in Lumen’s financial performance. Analysts continue to evaluate the company’s future prospects, considering both the earnings surprise and the revenue challenges. Lumen’s recent financial results have become a focal point for market observers and stakeholders.
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