Seeking Alpha

Baird defends Iron Mountain, upgrades to Buy

  • Iron Mountain (IRM +0.8%) shares tick up after RW Baird's Andrew Wittmann and Justin Hauke defend the information management service provider after Barclays downgraded it on Friday.
  • The analysts upgraded IRM to Buy from Outperform, noting that pessimism over the company's chances of converting to a REIT and the CFO's departure present a "unique opportunity ... IRM's market cap has now dipped to pre-REIT levels, prior to strategic actions [that] were announced to unlock value in the wake of activist pressure in early 2011." That said, Iron Mountain's growth outlook is "admittedly reduced."
  • With a 4.3% dividend yield, investors are getting "paid to wait" for a "3:1 upside/downside potential," Wittmann and Hauke believe.
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