RBC Capital reiterates outperform rating on Iron Mountain stock

Published 16/06/2025, 15:22
RBC Capital reiterates outperform rating on Iron Mountain stock

RBC Capital on Monday reiterated its outperform rating and $139.00 price target on Iron Mountain (NYSE:IRM) following meetings with company executives and site visits to gain insights into the records management and asset lifecycle management businesses. The company, currently valued at $30.2 billion, has garnered significant analyst attention, with InvestingPro data showing six analysts recently revising their earnings estimates upward.

The investment firm tweaked its financial model after Iron Mountain’s first-quarter 2025 results, raising its estimates for the company. RBC now forecasts 2025 revenue of $6.81 billion, EBITDA of $2.53 billion, and AFFOps of $5.00, up from previous estimates of $6.79 billion, $2.46 billion, and $4.91, respectively. These projections align with the company’s strong performance trajectory, as InvestingPro data reveals impressive returns over multiple timeframes and consistent dividend payments for 16 consecutive years.

For 2026, RBC projects revenue of $7.42 billion, EBITDA of $2.76 billion, and AFFOps of $5.50, compared to earlier forecasts of $7.38 billion, $2.68 billion, and $5.33. The firm models capital expenditures of $1.95 billion for fiscal year 2025 and $1.84 billion for fiscal year 2026.

RBC considers Iron Mountain a "core holding" in its coverage list, citing the company’s "solid earnings trajectory, FCF core business, and promising growth initiatives in datacenters and ALM." This assessment is supported by the company’s robust fundamentals, with current revenue reaching $6.27 billion and EBITDA of $2.09 billion. For deeper insights into Iron Mountain’s valuation and growth prospects, investors can access comprehensive analysis through the detailed Pro Research Report available on InvestingPro.

The firm’s analysis follows site visits conducted to better understand Iron Mountain’s records management and asset lifecycle management operations, which form key components of the company’s business model.

In other recent news, Iron Mountain reported its first-quarter 2025 financial results, surpassing analysts’ expectations with an earnings per share of $0.43, compared to the forecasted $0.41. The company achieved a record revenue of $1.6 billion, slightly above the anticipated $1.59 billion. Iron Mountain also provided optimistic full-year guidance, projecting revenue growth of 11% and adjusted EBITDA growth of 13%. In addition, Truist Securities increased its price target for Iron Mountain from $95.00 to $110.00, maintaining a Buy rating, following the company’s recent government contract win. This contract is part of a broader digital transformation effort with the Department of Treasury, valued at approximately $140 million. Furthermore, Iron Mountain’s shareholders approved an amendment to the company’s 2014 Stock and Cash Incentive Plan, increasing the number of shares authorized for issuance by 4.6 million. The amendment extends the termination date of the plan to May 29, 2035. Lastly, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

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