Analyst George Tong of Goldman Sachs reiterated a Buy rating on Iron Mountain (IRM – Research Report), with a price target of $73.00.
George K. Tong gave Iron Mountain a Buy rating due to several reasons. Firstly, Iron Mountain’s third quarter operational trends were robust, mirroring those from the prior quarter. The company saw benefits from consistent storage volume trends, robust revenue management price realization, and ongoing progress with its growth portfolio. This growth portfolio includes data centres, asset lifecycle management, and digital solutions.
Of note, Iron Mountain’s data centre business grew more than 20% year over year organically in the third quarter, fuelled by digital transformation trends and solid demand from generative AI. Also, the component prices in Iron Mountain’s ALM business stabilized sequentially in the third quarter and are beginning to rebound, offering an appealing path for ALM revenue to return to double-digit growth over the next few quarters. As Iron Mountain continues to enlarge its growth portfolio, realize ongoing benefits from revenue management, and reduce its leverage multiple, Tong anticipates attractive valuation upside from AFFO growth and multiple.
In another report released on October 19, Wells Fargo also maintained a Buy rating on the stock with a $65.00 price target.
IRM’s price has also changed moderately for the past six months – from $55.170 to $61.750, which is a 11.93% increase.
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Iron Mountain (IRM) Company Description:
Iron Mountain, Inc. engages in the provision of storage and information management solutions. It operates through the following business segments: North American Records & Information Management Business, North American Data Management Business, Western European Business, Other International Business, Global Data Center Business and Corporate & Other Business. The North American Records & Information Management Business segment offers record management, destruction, and fulfilment services throughout U.S. and Canada. The North American Data Management Business segment handles data protection and recovery, server and computer backup services, and safeguarding of electronic and physical media in U.S. and Canada. The Western European Business segment offers records management, data protection and recovery services, and document management solutions throughout the United Kingdom, Ireland, Austria, Belgium, France, Germany, Netherlands, Spain, and Switzerland. The Other International Business segment offers storage and information management services throughout the remaining European countries, Latin America, the Middle East and Africa. The Global Data Center Business segment provides data center facilities to protect mission-critical assets and ensure the continued operation of its customers IT infrastructures, with secure and reliable colocation and wholesale options. The Corporate & Other Business segment consists of the storage, safeguarding and electronic or physical deliveries of physical media of all types and digital content repository systems to house, distribute, and archive key media assets, primarily for entertainment and media industry clients. The company was founded by Herman Knaust in 1951 and is headquartered in Boston, MA.
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