Citigroup Upgrades Lumen Technologies (LUMN)

Q2 Results Drive Upgrade

Lumen Technologies (LUMN) has received an upgrade from Citigroup after the company reported strong second-quarter results ended June 30, 2024. The upgrade reflects Citigroup's positive outlook for Lumen's business, driven by its expanding network, focus on cloud and edge computing, and growing customer base.

Key Financial Highlights

Lumen's Q2 revenue increased by 5% year over year to $15.6 billion, exceeding analyst estimates. The company's adjusted EBITDA also grew by 3% to $4.2 billion. Lumen attributed this growth to increased demand for its high-speed broadband services and growing cloud and edge computing capabilities.

Positive Analyst Outlook

Citigroup analyst Michael Rollins upgraded Lumen's rating from "Neutral" to "Buy" with a target price of $15 per share. Rollins cited the company's strong second-quarter performance, its growth opportunities in key markets, and its potential to generate free cash flow going forward.

Lumen's Growth Strategy

Lumen has been actively investing in expanding its fiber network and developing its cloud and edge computing capabilities. The company is also focusing on growing its enterprise and government customer base. These initiatives are expected to drive long-term growth and enhance Lumen's competitive position in the telecommunications industry.