Zacks Investment Research upgraded shares of Iron Mountain Incorporated (IRM) from UNDERPERFORM to NEUTRAL on March 22, 2013, with a target price of $37.00.
Iron Mountain reported mixed fourth quarter results. Earnings missed the Zacks Consensus Estimate by $0.05, while revenues managed to surpass the consensus. The company provided a positive guidance. We believe that a strong product portfolio, recurring and diversified revenue base, increasing market share and promising international business are the primary growth catalysts for the company. However, costs related to the conversion and decline in recycled paper prices are the near-term headwinds for the company. Additionally, volatile foreign exchange rates and increasing competition are the other headwinds. Nonetheless, the company's decision to convert to REIT to reduce tax burden and increase shareholder value is a significant positive. We upgrade the stock from an Underperform to Neutral recommendation and set a price target of $37.00.
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