Lumen upgraded to Buy from Neutral at Citi

Citi upgraded Lumen (LUMN) to Buy from Neutral with a price target of $6.50, down from $8. The firm also added a “90-day positive catalyst watch” on the shares. Citi sees an opportunity for Lumen to benefit from four potentially positive catalysts over the next year: increasing private connectivity fabric sales, pursuing a possible monetization of its fiber and/or mass market segment, transforming the company to better integrate the operations and reduce costs, and improving sales in the core business segment. The first three provide financial flexibility and “runway room” to turnaround the business segment, while Lumen is setup to begin growing consolidated EBITDA significantly on an annual basis in 2026, the analyst tells investors in a research note. The firm believes the recent pullback in the shares and the opportunity to deliver forward progress on the catalysts create a favorable risk/reward profile.