Bear of the Day: Iron Mountain
by Zacks Equity ResearchJanuary 07, 2013 | Comments : 0 Recommended this article: (0)
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Although the company's decision to convert into an REIT would definitely increase shareholders value and reduce the tax burden, we continue to believe that the results will be negatively affected by sluggish internal growth, volatile foreign exchange rates and a decline in recycled paper prices. Iron Mountain has a strong product portfolio, which is helping it to expand into international territories.
However, we believe that this will not be enough to drive significant growth over the long term. Thus, we downgrade the stock from Neutral to Underperform and set a price target of $28.00.