Why This Analyst Is Betting Big On Iron Mountain?

RBC Capital Markets analyst Jonathan Atkin upgraded the rating on Iron Mountain Inc IRM to Outperform from Sector Perform at an increased price target of $68 from $58.

The analyst is bullish on the stock reflecting Q2 results flow-through, roll-forward impacts in the updated model, and less conservative valuation metrics.

Earlier this month, IRM reported Q2 revenue growth of 5% year-on-year to $1.36 billion, beating the consensus estimate of $1.35 billion, and adjusted EPS of $0.40 was in line with the consensus.

The board declared a quarterly cash dividend of $0.65 per share, representing an increase of 5%.

The analyst raised the estimates for FY23 revenue and AFFO per share to $5.58 billion (from $5.56 billion), and $4.00 (from $3.96), respectively.

For FY24, IRM increased estimates for revenue and AFFO per share to $6.17 billion (from $6.10 billion) and $4.31 (from $4.30), respectively.

Price Action: IRM shares are trading higher by 2.13% at $59.81 on the last check Tuesday.