2024-06-28 13:58:17 ET
Summary
- IRM stock is overbought, with other technical signals suggesting exhaustion of its near-term momentum.
- Its balance sheet is stretched with total debt over $15.3 billion and interest coverage becoming lower.
- Combined with high valuation, I see good odds range-bound prices or some pullbacks in the near future.
IRM stock is overbought
The goal of this article is to reiterate my Hold rating on Iron Mountain Incorporated (NYSE: IRM ). My last article on the stock was published about three months ago and entitled " Iron Mountain Has No Lack Of Catalysts But Is Fully Valued Now ." The title also gave away the essence of that article already. More specifically, my holding rating was issued by weighing these following factors:
… Its data center division offers attractive opportunities in a burgeoning industry and there are plenty of cross-sell synergistic opportunities. However, these positive catalysts are opposed by some concerns. At the top of my list is the valuation risk. Both its P/FFO ratio and dividend yield suggest IRM might be near the most richly valued level in at least a decade.
Read the full article on Seeking Alpha
For further details see:
Iron Mountain: Overbought, Rising Debt, And AI Relevance (Technical Analysis)