Iron Mountain climbs after Jefferies starts at 'buy'

Iron Mountain's IRM.N shares up 3.8% on Mon to $103.70, a nearly 3-month high, after Jefferies initiates coverage at 'buy', saying its strategic transformation isn't fully appreciated

The REIT's shares well outperforming the S&P Real Estate index .SPLRCR, which is essentially flat on the session

Jefferies assigns PT of $120, implying 20% upside to stock's last close

Known for its records storage business, IRM has reinvented itself, transforming into a diversified information management and technology infrastructure leader, Jefferies analyst Jonathan Petersen wrote in note

Growth businesses expected to drive 10%+ adjusted funds from operations growth into 2029 on secular tailwinds from artificial intelligence and digital infrastructure investment, Petersen said

Data center guidance is conservative, Petersen said, adding he believes investors "underestimate the upside potential from incremental leasing and new starts"

Now, of 12 analysts covering IRM, recommendation breakdown is 10 "strong buy" or "buy", 1 "hold" and 1 "sell"; median PT is $122, according to LSEG data

Including the move on Mon, IRM shares down ~1% YTD vs 2% advance in SPLRCR