Lumen Technologies (LUMN) is shifting some of its executives into different roles. Dave Young is now the senior vice president of strategic sales and his former position of SVP of public sector will be filled by Zain Ahmed, the telecommunications company said Tuesday
Both Young and Ahmed will report to Ed Morche, president of enterprise and public sector business in North America.
Young will now oversee the Lumen System Integrator, Global Hyberscaler, Digial Ventures and Indirect Sales groups in his newly-created role.
Ahmed will be responsible for business development, capture management, program management and sales to public sector clients
Lumen’s public sector business includes federal, state and local, military, K-12 schools, research and education institutions, and public safety.
“I’m excited that Dave and Zain, two of our strongest sales leaders, are both taking on new roles that will position Lumen to grow our strategic enterprise and public sector business for years to come,” Morche said in a company release.
LUMN receives $26+ price target
It is quite fair to say that LUMN stock is undervalued and would make for a better investment than AT&T. Additionally – similar to AT&T – LUMN has a fairly high debt burden whose maturities it has managed to ladder pretty well to avoid any major financing risk.
The tale here, however, differs from T’s in one essential manner that prompted us to recently become shareholders: LUMN is CHEAP!
It is currently trading at a paltry 5.3x projected EBITDA, a significant discount to its historical average of 5.5x. While this is not a substantial discount, it is significant considering that interest rates have fallen dramatically over the company’s history, and its portfolio is now much more heavily concentrated in high-quality fiber assets with good development prospects and significant long-term growth tailwinds of the 4th Industrial Revolution.
With this factored in, I believe Lumen Technologies (LUMN) could very well reach above the $26 dollar price point, and many other analysts agree with this idea.
Bottom line is LUMN is dirt cheap and has a very clear route to development through its increasingly focused portfolio of core growth fiber assets, while having similar high leverage and chronically poor performance.
