Citigroup Reaffirms Buy Rating on Lumen Technologies and Increases Price Target to $7.50
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 25 2025
0mins
Should l Buy LUMN?
Source: Benzinga
Real-time Intelligence: Benzinga Pro offers the fastest news alerts to help traders stay informed and make winning trades in the stock market.
Exclusive Community: Joining Benzinga Pro connects users with over 10,000 serious traders and provides access to exclusive stories and insights from Benzinga reporters.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LUMN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on LUMN
Wall Street analysts forecast LUMN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LUMN is 8.33 USD with a low forecast of 7.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
0 Buy
5 Hold
1 Sell
Hold
Current: 8.930
Low
7.00
Averages
8.33
High
11.00
Current: 8.930
Low
7.00
Averages
8.33
High
11.00
About LUMN
Lumen Technologies, Inc. is a networking company, which connects people, data, and applications quickly and securely. The Company is engaged in providing an array of integrated products and services to its domestic and global business customers and its domestic mass market customers. It operates through two segments: Business segment and Mass Markets segment. The Company conducts its operations under four brands: Lumen, which is its flagship brand for serving the enterprise and wholesale markets, including its Private Connectivity Fabric (PCF) network architecture, Lumen Digital products, and its priority services including Edge, Network-as-a-Service and cybersecurity; Quantum Fiber, which provides fiber-based broadband services to residential and small business customers; CenturyLink, which is engaged in providing primarily mass-marketed copper-based communications services, and Black Lotus Labs, which is its cyberthreat research and intelligence arm.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CapWealth Advisors Increases Stake in Lumen Technologies
- Share Acquisition: On February 2, 2026, CapWealth Advisors disclosed the purchase of 704,970 shares of Lumen Technologies (LUMN) worth approximately $9.92 million, indicating confidence in the company's future growth potential.
- Market Value Increase: The quarter-end value of Lumen Technologies increased by $14.54 million due to this share addition and market price movements, reflecting investor optimism regarding its business outlook.
- Asset Allocation: Following this acquisition, Lumen Technologies represents 3.3% of CapWealth's 13F reportable assets, highlighting its significance in the investment portfolio, closely following major holdings like PLTR and WMB.
- Strategic Shift: Lumen Technologies sold its Mass Markets fiber-to-the-home business to AT&T for $5.75 billion, aiming to focus on the digital infrastructure needed by enterprises and public sector organizations, indicating a strategic pivot in response to the growing importance of artificial intelligence.
See More
Lumen Sells Fiber-to-the-Home Business for $5.75 Billion
- Transaction Completion: Lumen Technologies has successfully sold its fiber-to-the-home business, including Quantum Fiber, to AT&T for $5.75 billion in cash, impacting over 1 million fiber customers and covering more than 4 million fiber-enabled locations, thereby significantly optimizing the company's asset structure.
- Asset Retention: Post-transaction, Lumen will retain key assets such as national, regional, state, and metro fiber networks along with related real estate, which will support the company's enterprise transformation and ensure competitive advantage in future market dynamics.
- Debt Reduction: The deal generated approximately $4.8 billion in proceeds, which Lumen plans to use alongside cash on hand to retire all super-priority debt, expected to reduce annual interest expenses by about $300 million, thus accelerating its transformation strategy.
- Financial Outlook: Following the transaction, Lumen's total debt is projected to fall below $13 billion, bringing the net debt-to-adjusted EBITDA ratio below 4x, further enhancing the company's financial health and setting a solid foundation for its upcoming fourth-quarter and full-year earnings report on February 3.
See More
Lumen Technologies Q4 Earnings Preview
- Earnings Expectations: Lumen Technologies anticipates a Q4 loss of $0.27 per share with revenues of $3.04 billion, reflecting an 8.7% year-over-year decline, indicating ongoing revenue pressures that may impact investor confidence.
- Strategic Initiatives: The company announced initiatives to expand enterprise connectivity and support AI infrastructure, including enhancements to its internet backbone and multiple partnerships with data center operators and enterprise tech firms, aimed at boosting market competitiveness.
- Balance Sheet Improvement: Lumen has undertaken balance sheet moves such as debt tender offers and new note issuance, with analysts noting that the divestiture of fiber to home will lead to a leaner debt structure, enhancing future financial flexibility.
- Profitability Assessment: According to Seeking Alpha's QuantRating system, Lumen holds an overall score of 3.23, with strong momentum and valuation grades, but lower scores in growth and profitability, indicating persistent challenges in its profitability metrics.
See More
Super Bowl of Earnings for S&P 500
- Disney Earnings Highlights: Disney reported Q1 EPS of $1.63, surpassing the $1.57 estimate, with revenue of $25.98 billion exceeding expectations of $25.74 billion, indicating strong performance in the entertainment sector, although CEO Bob Iger plans to step back from daily management before his contract ends.
- Palantir Earnings Focus: Palantir is set to report earnings after Monday's close, with investors closely monitoring its commercial customer count and average revenue per customer, as these metrics reflect the adoption of its AI platforms beyond government contracts, impacting its high valuation sustainability.
- AMD Earnings Expectations: Analysts expect AMD to report earnings of $1.32 per share on revenue of $9.67 billion, with the market anticipating a beat-and-raise quarter driven by growth in MI350 AI accelerators and server CPU market share gains, potentially pushing the stock to new all-time highs.
- Google Cloud Competitiveness: Investors will keep an eye on Google Cloud's momentum and the successful monetization of Gemini AI within search and YouTube to ensure the company maintains its competitive edge against AI rivals, especially in light of its massive capital expenditure plans for AI infrastructure.
See More
AT&T Acquires Lumen's Fiber Business for $5.75 Billion
- Transaction Completion: AT&T has successfully closed its $5.75 billion cash acquisition of Lumen's fiber business, which will extend AT&T Fiber's internet service to 32 states, providing millions of Americans with a superior online experience and solidifying its leading position in the industry.
- Market Coverage Expansion: This acquisition will enable AT&T Fiber to reach more homes and businesses, enhancing connectivity across the U.S., creating well-paying jobs, and delivering greater value to shareholders, reflecting the company's confidence in future growth.
- Financial Guidance Reaffirmed: AT&T reiterated all financial guidance provided in its Q4 2025 earnings report, indicating strong confidence in the successful completion of the transaction and its anticipated positive impact on 2026 performance.
- Industry Leadership: CEO John Stankey emphasized that this deal will further strengthen the company's competitive edge, allowing it to better meet consumer demands while maintaining its leadership in providing high-speed internet connections.
See More
AT&T Acquires Lumen's Fiber Business for $5.75 Billion
- User Base Expansion: AT&T's acquisition of Lumen's fiber business adds over 1 million fiber subscribers and covers more than 4 million fiber locations, significantly enhancing its market share in major cities like Denver, Seattle, and Salt Lake City, which is expected to drive revenue growth.
- Network Scale Enhancement: The deal provides AT&T with access to over 4 million customer locations across 11 states, leveraging Lumen's fiber construction capabilities to accelerate the pace of fiber internet deployment, with a goal of exceeding 60 million fiber locations by the end of 2030, thereby strengthening competitive positioning.
- Service Integration Advantage: AT&T plans to combine fiber broadband with 5G wireless services, offering more choices and is expected to enhance the growth of high-value customer relationships, increasing customer loyalty and driving long-term revenue and market share growth.
- Strategic Investment Returns: AT&T reiterates its financial guidance from the fourth quarter 2025 earnings report, anticipating that this acquisition will yield strong returns on investment, further solidifying its leading position in the industry and driving future business growth.
See More
CapWealth Advisors Increases Stake in Lumen Technologies
- Share Acquisition: On February 2, 2026, CapWealth Advisors disclosed the purchase of 704,970 shares of Lumen Technologies (LUMN) worth approximately $9.92 million, indicating confidence in the company's future growth potential.
- Market Value Increase: The quarter-end value of Lumen Technologies increased by $14.54 million due to this share addition and market price movements, reflecting investor optimism regarding its business outlook.
- Asset Allocation: Following this acquisition, Lumen Technologies represents 3.3% of CapWealth's 13F reportable assets, highlighting its significance in the investment portfolio, closely following major holdings like PLTR and WMB.
- Strategic Shift: Lumen Technologies sold its Mass Markets fiber-to-the-home business to AT&T for $5.75 billion, aiming to focus on the digital infrastructure needed by enterprises and public sector organizations, indicating a strategic pivot in response to the growing importance of artificial intelligence.
See More
Lumen Sells Fiber-to-the-Home Business for $5.75 Billion
- Transaction Completion: Lumen Technologies has successfully sold its fiber-to-the-home business, including Quantum Fiber, to AT&T for $5.75 billion in cash, impacting over 1 million fiber customers and covering more than 4 million fiber-enabled locations, thereby significantly optimizing the company's asset structure.
- Asset Retention: Post-transaction, Lumen will retain key assets such as national, regional, state, and metro fiber networks along with related real estate, which will support the company's enterprise transformation and ensure competitive advantage in future market dynamics.
- Debt Reduction: The deal generated approximately $4.8 billion in proceeds, which Lumen plans to use alongside cash on hand to retire all super-priority debt, expected to reduce annual interest expenses by about $300 million, thus accelerating its transformation strategy.
- Financial Outlook: Following the transaction, Lumen's total debt is projected to fall below $13 billion, bringing the net debt-to-adjusted EBITDA ratio below 4x, further enhancing the company's financial health and setting a solid foundation for its upcoming fourth-quarter and full-year earnings report on February 3.
See More
Lumen Technologies Q4 Earnings Preview
- Earnings Expectations: Lumen Technologies anticipates a Q4 loss of $0.27 per share with revenues of $3.04 billion, reflecting an 8.7% year-over-year decline, indicating ongoing revenue pressures that may impact investor confidence.
- Strategic Initiatives: The company announced initiatives to expand enterprise connectivity and support AI infrastructure, including enhancements to its internet backbone and multiple partnerships with data center operators and enterprise tech firms, aimed at boosting market competitiveness.
- Balance Sheet Improvement: Lumen has undertaken balance sheet moves such as debt tender offers and new note issuance, with analysts noting that the divestiture of fiber to home will lead to a leaner debt structure, enhancing future financial flexibility.
- Profitability Assessment: According to Seeking Alpha's QuantRating system, Lumen holds an overall score of 3.23, with strong momentum and valuation grades, but lower scores in growth and profitability, indicating persistent challenges in its profitability metrics.
See More
Super Bowl of Earnings for S&P 500
- Disney Earnings Highlights: Disney reported Q1 EPS of $1.63, surpassing the $1.57 estimate, with revenue of $25.98 billion exceeding expectations of $25.74 billion, indicating strong performance in the entertainment sector, although CEO Bob Iger plans to step back from daily management before his contract ends.
- Palantir Earnings Focus: Palantir is set to report earnings after Monday's close, with investors closely monitoring its commercial customer count and average revenue per customer, as these metrics reflect the adoption of its AI platforms beyond government contracts, impacting its high valuation sustainability.
- AMD Earnings Expectations: Analysts expect AMD to report earnings of $1.32 per share on revenue of $9.67 billion, with the market anticipating a beat-and-raise quarter driven by growth in MI350 AI accelerators and server CPU market share gains, potentially pushing the stock to new all-time highs.
- Google Cloud Competitiveness: Investors will keep an eye on Google Cloud's momentum and the successful monetization of Gemini AI within search and YouTube to ensure the company maintains its competitive edge against AI rivals, especially in light of its massive capital expenditure plans for AI infrastructure.
See More
AT&T Acquires Lumen's Fiber Business for $5.75 Billion
- Transaction Completion: AT&T has successfully closed its $5.75 billion cash acquisition of Lumen's fiber business, which will extend AT&T Fiber's internet service to 32 states, providing millions of Americans with a superior online experience and solidifying its leading position in the industry.
- Market Coverage Expansion: This acquisition will enable AT&T Fiber to reach more homes and businesses, enhancing connectivity across the U.S., creating well-paying jobs, and delivering greater value to shareholders, reflecting the company's confidence in future growth.
- Financial Guidance Reaffirmed: AT&T reiterated all financial guidance provided in its Q4 2025 earnings report, indicating strong confidence in the successful completion of the transaction and its anticipated positive impact on 2026 performance.
- Industry Leadership: CEO John Stankey emphasized that this deal will further strengthen the company's competitive edge, allowing it to better meet consumer demands while maintaining its leadership in providing high-speed internet connections.
See More
AT&T Acquires Lumen's Fiber Business for $5.75 Billion
- User Base Expansion: AT&T's acquisition of Lumen's fiber business adds over 1 million fiber subscribers and covers more than 4 million fiber locations, significantly enhancing its market share in major cities like Denver, Seattle, and Salt Lake City, which is expected to drive revenue growth.
- Network Scale Enhancement: The deal provides AT&T with access to over 4 million customer locations across 11 states, leveraging Lumen's fiber construction capabilities to accelerate the pace of fiber internet deployment, with a goal of exceeding 60 million fiber locations by the end of 2030, thereby strengthening competitive positioning.
- Service Integration Advantage: AT&T plans to combine fiber broadband with 5G wireless services, offering more choices and is expected to enhance the growth of high-value customer relationships, increasing customer loyalty and driving long-term revenue and market share growth.
- Strategic Investment Returns: AT&T reiterates its financial guidance from the fourth quarter 2025 earnings report, anticipating that this acquisition will yield strong returns on investment, further solidifying its leading position in the industry and driving future business growth.
See More
