NEW YORK (TheStreet) -- Iron Mountain Inc. (IRM - Get Report) stock is down -1.72% to $34.25 in pre-market trading after it was downgraded to "neutral" from "outperform" at Robert W. Baird & Co., with a $39 price target.
The firm cited the information management company's lower growth profile and possible equity dilution for its rating.
Separately, TheStreet Ratings team rates IRON MOUNTAIN INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate IRON MOUNTAIN INC (IRM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 114.9% when compared to the same quarter one year prior, rising from $19.39 million to $41.67 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 3.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 120.00% and other important driving factors, this stock has surged by 28.94% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- IRON MOUNTAIN INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, IRON MOUNTAIN INC reported lower earnings of $0.51 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($1.43 versus $0.51).
- The gross profit margin for IRON MOUNTAIN INC is rather high; currently it is at 56.48%. Regardless of IRM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.41% trails the industry average.
- You can view the full analysis from the report here: IRM Ratings Report