Iron Mountain stock initiated at Buy by Jefferies with $120 price target

Investing.com - Iron Mountain (NYSE:IRM) received a new Buy rating from Jefferies on Monday, with the firm setting a $120.00 price target for the information management company. The stock, currently trading at $99.89, has shown resilience with a 16% return over the past six months. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $44 to $140, suggesting significant market uncertainty about the company’s valuation.

Jefferies analyst Jonathan Petersen highlighted Iron Mountain’s strategic transformation, which has accelerated growth across data centers, digital solutions, and asset lifecycle management. The company leverages its global customer base of 240,000 clients across 61 countries, including 95% of Fortune 1000 companies, to drive cross-selling opportunities. This strategy has contributed to impressive revenue growth of 10.7% over the last twelve months, with InvestingPro analysis showing the company maintains a healthy 56% gross profit margin.

The growth segments are projected to account for approximately 44% of Iron Mountain’s revenues by 2029, growing at nearly 25% annually, according to Jefferies. The $120 price target implies 21.0x Jefferies’ 2026 AFFO estimate. With a market capitalization of $29.5 billion and a track record of 16 consecutive years of dividend payments, currently yielding 3.14%, Iron Mountain demonstrates strong shareholder value commitment. Dive deeper into Iron Mountain’s financial health and growth prospects with InvestingPro’s comprehensive research report, which includes over 30 key metrics and valuable investment insights.

Iron Mountain, traditionally known for its records storage business and underground vaults, has reinvented itself as a diversified information management and technology infrastructure leader. The company is targeting a $165 billion total addressable market through its expanded offerings.

Project Matterhorn, launched in 2021, has accelerated Iron Mountain’s growth businesses, helping the company meet its 2026 targets for Adjusted EBITDA and AFFO a year early through a solutions-based sales approach, while the legacy storage business remains resilient with stable volumes and CPI+ rent growth.

In other recent news, Iron Mountain Incorporated reported its second-quarter earnings for 2025, showing a 12% increase in revenue year-over-year, reaching $1.71 billion. However, the company’s earnings per share (EPS) came in at $0.48, slightly below the forecasted $0.50. In addition to these financial results, Iron Mountain has priced an upsized offering of €1.2 billion in 4.75% Senior Notes due 2034, which will be used to redeem existing notes and for general corporate purposes. Analyst firms have expressed confidence in Iron Mountain’s future prospects. Stifel reiterated its Buy rating with a $140 price target, expecting a temporary downturn in data center leasing to resolve by 2026. Truist Securities also reaffirmed its Buy rating with a $110 price target, citing strong medium-term organic revenue growth. The company’s strategic initiatives and financial moves continue to be closely monitored by investors and analysts alike.

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