Bear of the Day: Iron Mountain
by Zacks Equity Research
January 07, 2013 | Comments :
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Iron Mountain (
IRM) reported a dismal third quarter negatively impacted by lower-than-expected organic growth in the core services coupled with contraction in activity-based service revenue and decline in recycled paper prices. The company provided a tepid outlook.
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.
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext. 9339.
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.
Read the full Analyst Reporton IRM