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.

While we acknowledge the potential of LUMN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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