Barclays Maintains an 'Equalweight' on Iron Mountain (IRM); Closer Look At REIT Conversion; Can't Find Any N-T Catalyst
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Price: $36.72 -0.84%
Rating Summary:
4 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
4 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade IRM Now!
Barclays maintains an 'Equalweight' on Iron Mountain (NYSE: IRM) price target of $36.00.
Analyst, Gary E. Bisbee, said, "We have updated our model to incorporate the company's planned conversion to a REIT in 2014, in addition to several other tweaks discussed in this report (F/X, slightly lower margins, etc.). As a result, we have trimmed our revenue and adjusted OIBDA estimates for 2012-14, and adjusted EPS and free cash flow estimates in 2012-13. Due to expected substantial tax savings, we have increased our adjusted EPS and free cash flow estimates in 2014 and beyond. We now forecast 2012-2014 adjusted EPS of $1.30, $1.36, and $2.14, respectively."
Bisbee sees some risks involved, hence the EW-rating. He reminds folks that in order to convert into a REIT, the company must apply for an IRS ruling, which IRM hasn't done yet. The IRS may take up to a year to determine whether the company is appropriate as a REIT (so IRS decision isn't a flat out guarantee). While Barclays believes IRM will be granted REIT status, Bisbee doesn't see any near-term catalysts for the company, but may consider getting more aggressive if shares dip.
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 $33.08 yesterday, with a 52 week range of $27.10-$35.79.
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Analyst, Gary E. Bisbee, said, "We have updated our model to incorporate the company's planned conversion to a REIT in 2014, in addition to several other tweaks discussed in this report (F/X, slightly lower margins, etc.). As a result, we have trimmed our revenue and adjusted OIBDA estimates for 2012-14, and adjusted EPS and free cash flow estimates in 2012-13. Due to expected substantial tax savings, we have increased our adjusted EPS and free cash flow estimates in 2014 and beyond. We now forecast 2012-2014 adjusted EPS of $1.30, $1.36, and $2.14, respectively."
Bisbee sees some risks involved, hence the EW-rating. He reminds folks that in order to convert into a REIT, the company must apply for an IRS ruling, which IRM hasn't done yet. The IRS may take up to a year to determine whether the company is appropriate as a REIT (so IRS decision isn't a flat out guarantee). While Barclays believes IRM will be granted REIT status, Bisbee doesn't see any near-term catalysts for the company, but may consider getting more aggressive if shares dip.
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 $33.08 yesterday, with a 52 week range of $27.10-$35.79.
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