Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Stifel has reiterated its Buy rating and $140.00 price target on Iron Mountain (NYSE:IRM) following meetings with the company’s CFO. The target represents a 40% upside from the current price of $99.48, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The research firm expressed increased confidence that the current "drought" in data center leasing will be temporary and will not create a gap in the company’s data center revenue growth. Stifel expects 2026 to return to normal, with Iron Mountain likely to guide for 125MW when it issues its 2026 outlook. The company’s recent performance supports this optimism, with revenue growing 10.72% in the last twelve months.
Stifel highlighted several positive factors, including strong returns in the data center business and the potential for the company’s ALM segment to become its largest revenue generator in the future.
The firm also noted additional details regarding Iron Mountain’s recent contract win with the Department of Treasury, and confirmed management’s expectation that the company can drive growth without issuing equity.
Physical storage pricing remains healthy in the mid-to-high-single-digit range, according to Stifel’s analysis, further supporting the positive outlook for the document and data management company.
In other recent news, Iron Mountain Incorporated reported a 12% increase in revenue for the second quarter of 2025, totaling $1.71 billion. However, the company’s earnings per share (EPS) of $0.48 missed the forecasted $0.50. Iron Mountain also announced the pricing of an upsized €1.2 billion senior notes offering at 4.75% due in 2034, a €450 million increase from the initially planned amount. The proceeds from this offering will be used to redeem existing notes and for general corporate purposes, including debt repayment.
In analyst updates, Truist Securities reiterated its Buy rating on Iron Mountain with a price target of $110. The firm expressed confidence in the company’s medium-term organic revenue growth, driven by strong annual pricing increases in its Record Information Management segment and significant growth in its Asset Lifecycle Management, Digital, and Data Center segments. These recent developments reflect Iron Mountain’s strategic initiatives and financial activities aimed at bolstering its market position.
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