Barclays Maintains an 'Equalweight' on Iron Mountain (IRM); Updating Model for Strategic Plan & Digital Sale; Raising Target

Barclays maintains an 'Equalweight' on Iron Mountain (NYSE: IRM), PT increased from $32 to $35.

Barclays analyst says, "We have updated our Iron Mountain model to incorporate both the expected sale of the company's Digital assets (excluding the software escrow business, which it is keeping) and to better factor in recent 1Q'11 earnings results and the three-year strategic plan that the company announced in April...We now estimate 2011-13 adjusted EPS of $1.22, $1.44, and $1.68 (6%, 18%, and 16% y/y growth), and 2011-13 free cash flow of $374M, $393M, and $436M, respectively."

"Key adjustments to our model include: 1) $85M/$10M reduction of revenue/Adj. OIBDA in 2011 due to expected Digital sale; 2) share repurchases of $411M/$1.6B in 2011 and through 2013, with ~15% of shares outstanding retired by 2013; 3) ~$510M of dividends in 2011-13; and 4) ~$850M of incremental borrowings."

For more ratings news on Iron Mountain click here and for the rating history of Iron Mountain click here.

Shares of Iron Mountain closed at $32.88 yesterday.

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