Piper Jaffray Remains Bullish on Iron Mountain (IRM) Following Analysis of $2.5B Recall Acquisition

Piper Jaffray reiterates an Overweight rating and $43.00 price target on Iron Mountain (NYSE: IRM) following a refreshed analysis of the $2.5B Recall acquisition. Analyst George Tong expects the $2.5B transaction to yield EPS accretion of 29%.

Tong commented, "We reiterate our Overweight rating on Iron Mountain following refreshed analysis of the $2.5B Recall acquisition that shows meaningful value creation contributing to robust 29% EPS and 13% AFFO/shr accretion in 2017 and a positive potential re-rating of the shares. We further present a point/counter-point discussion of recently identified points of confusion around IRM's business model, noting 1) cash flows are sufficient to cover the dividend, 2) returns are positive from recent storage investments, and 3) racking assets command positive residual value."

For an analyst ratings summary and ratings history on Iron Mountain click here. For more ratings news on Iron Mountain click here.

Shares of Iron Mountain closed at $31.70 yesterday.

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