Williams rates the shares at market perform, and he cut his price target to $4.50 from $8. He’ll be watching for more information coming out of the company’s June 5 analyst day, and also will be looking for signs of less steep declines going forward. Though executives were “prioritizing investments to improve future revenue from greater retention and market share,” he worried that the efforts may not materialize as expected or under the right timeframe.Ĭowen analyst Gregory Williams wrote that Lumen’s management “cleared the decks” with the forecast but said it’s “too early in our view to assess if the new strategy will right the ship vs. “Headwinds from inflation, divestiture dis-synergies, & new investments were well ahead of our 2023 expectations without a relief valve from greater cost-reductions for what was depicted as a reset-year,” he wrote. The company has “significant legacy revenue streams an intensely competitive and increasingly commoditized commercial wireline market characterized by high fixed and low variable costs substantial accumulated debt an increasingly hard-to-rationalize expense base and so on,” he wrote.ĭel Deo rated the stock at underperform with a $4 target price.Ĭiti Research analyst Michael Rollins, meanwhile, downgraded the stock to sell from neutral and cut his price target to $3.50 from $6.25. While Lumen is under new leadership, Del Deo was skeptical that the company’s problems could be solved by a different view from management. Lumen’s 2023 adjusted Ebitda forecast fell short of expectations by about 10%, he noted. “Lumen’s initial 2023 outlook suggests the answer was: ‘No, they had not.’ It’s been a while since we’ve seen a miss of this magnitude.” “The most common question we received from clients recently has been: ‘Had numbers fallen enough?'” Del Deo said. Lumen Technologies (LUMN) Stock Forecast, Price & News 1.99 +0.17 (+9.34) (As of ET) Compare Today's Range 1.81 2.03 50-Day Range 1.78 2.64 52-Week Range 1.74 11.61 Volume 20.22 million shs Average Volume 29.94 million shs Market Capitalization 2.00 billion P/E Ratio N/A Dividend Yield N/A Price Target 5. 23, 1988, when they finished at $3.90, according to Dow Jones Market Data.Īnalysts were fairly blunt with their assessments following the report, with SVB MoffettNathanson’s Nick Del Deo writing that he’s “hard-pressed to remember the lats time spoke with a client with a positive bias” on the stock. With shares of the company formerly known as CenturyLink ending the day at $3.95, they posted their lowest close since Aug. This marks the second consecutive sharp post-earnings stock plunge for Lumen, as shares tumbled 17.7% after the company delivered results and eliminated its dividend in November. The stock fell 20.8% Wednesday, for its worst single-day percentage decline since Jan. She also noted that “2023 will be a year of rapid change for Lumen.” “We need to do a lot of things, some basic and some quite complex, to position ourselves to take advantage of the opportunity that lies before us,” Chief Executive Kathleen Johnson said on the earnings call.
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