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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Iron Mountain

05/07/2021 11:18

03:15 PM EDT, 05/07/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target price by $5 to $45 per share, equal to 16.4x our 2021 FFO estimate. We increase our 2021 FFO per share estimate by $0.05 to $2.75 and keep 2022's at $2.80. Results for Q1 were again above expectations with FFO per share of $0.63 vs. $0.59 and $0.07 above consensus, while revenue was up 1.2% Y/Y and exceeded expectations by 1.5%. Storage revenue was up 4% but partially offset by services down 3%. We were especially encouraged by adjusted EBITDA margins improving 100 basis points to 35.2% as IRM continues to see benefits from its Project Summit cost cutting initiatives. We maintain that IRM could deliver greater revenue and margin expansion than what investors are currently expecting and the company remains in a good position with a relatively low 5.5x leverage ratio.