Citi analysts increased their target price on shares of Lumen Technologies (NYSE: LUMN) to $7.50 from $6 per share on Thursday, believing its stock can benefit from “several potentially positive catalysts” over the next 12 months.
During webcasted presentations to industry analysts on Wednesday, company management reaffirmed “high-level long-term targets and financial aspirations to turnaround revenue performance,” the analysts wrote.
They noted that the pull-back in interest rates and recent debt refinancings are also accretive to their valuation framework.
As well, Citi analysts weighed in on the stock price run up before the event and sell off after, opining that the market may have been looking for a more specific update.
“We are looking forward to an opportunity to delve deeper into the operating and financial opportunities discussed at the event when we meet with management next week on September 29,” they added.
The analysts have a ‘Buy/High Risk’ rating on the stock.
Lumen Technologies shares rose 4.7% to $5.92 in Thursday afternoon trading.