Research Alert: CFRA Keeps Buy Rating On Shares Of Iron Mountain Incorporated
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We increase our 12-month target price by $20 to $143 based on a forward P/FFO of 34.0x our 2026 FFO estimate, a premium to its one-year average of 27.2x. We maintain our 2026 and 2027 FFO estimates at $4.20 and $4.61, respectively. IRM reported 17% organic growth in Q1, the highest mark in more than 25 years, highlighting the strength of the data center expansion and services growth. Data center growth continues to beat expectations with management expecting to be meaningfully above its original 100MW guidance for the year; this is evident in the guidance increase of $175M for revenue. We see the recently acquired FedRAMP High authorization designation, which allows for cloud storage of mission-critical and highly-sensitive federal data, will drive higher service revenue growth in the future. Net lease adjusted leverage is now 4.8x, the lowest level since IRM's 2014 REIT conversion, highlighting the capacity for management to fund significant data center capex expansion over the next five years.
