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Thursday, August 11, 2022

Lumen Announces Expansion of Network Capacity

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Lumen Technologies (LUMN) has announced that it is adding a new on-net route by utilizing the Google Dunant subsea cable system to expand its network capacity. The company provides integrated communications to residential and business customers.

The key motive behind this move is to meet the growing demand for cloud connectivity services and data. The company expects to deliver services on the Dunant subsea system from September. (See Lumen stock charts on TipRanks)

The cable system connects Virginia data center corridor in the U.S. with Saint-Hilaire-de-Riez on the French Atlantic coast. With this new route, international businesses and wholesale providers will have access to a secure, diverse trans-Atlantic network option.

Also, the trans-Atlantic subsea portfolio will offer diverse routes, low latency and a connection to one of the most interconnected and deeply peered networks in the world.

The President of Global Customer Success at Lumen, Laurinda Pang, said, “The capacity Lumen will be offering on the Dunant subsea cable can be scaled to meet increased customer broadband demands for years to come.”

Following the $2.7 billion Stonepeak divestiture deal announcement, Cowen & Co. analyst Gregory Williams on July 26 maintained a Hold rating on the stock with a price target of $12 (downside potential of 4.5%). Williams expects the company to announce sales of its other non-core assets.

Based on 1 Buy, 4 Holds and 3 Sells, the stock has a Hold consensus. The average Lumen price target of $11.67 implies 7.2% downside potential from current levels. Shares have gained 29.1% over the past year.

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The post Lumen Announces Expansion of Network Capacity appeared first on TipRanks Financial Blog.

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