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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