Zacks Investment Research downgraded shares of Iron Mountain Inc. (IRM) from OUTPERFORM to UNDERPERFORM on February 25, 2015, with a target price of $33.00.
Iron Mountain reported dismal fourth-quarter 2014 results. While earnings lagged the Zacks Consensus Estimate, revenues were in line. Though Iron Mountain's modest product portfolio and improved market share are positives, rising costs and a highly leveraged balance sheet remains an overhang on the stock. The company has significantly high levels of debt, which can impact its risk profile. In addition, expenses related to conversion and fluctuations in recycled paper prices remain near-term headwinds. Further, volatile foreign exchange rates and stiff competition from peers can weigh down on the results. Thus, we have an Underperform recommendation on the stock with a target price of $33.00.
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