Barclays Raises Iron Mountain Price Target to $122, Keeps Overweight Rating

Barclays raised Iron Mountain's price target to $122 from $121, maintaining an Overweight rating. The firm adjusted models in the data center group.

Barclays has increased its price target for Iron Mountain (IRM) to $122 from $121, maintaining an Overweight rating. The firm has adjusted its models for the data center group, reflecting the company's strategic pivot into this high-growth sector. Iron Mountain's transition from records management to data centers is a transformative move, aligning with the projected 14.4% compound annual growth rate (CAGR) for the global data center colocation market through 2030 [2].

The company's aggressive capital deployment, operational discipline, and focus on AI-driven infrastructure position it as a compelling long-term investment. In its most recent earnings report, Iron Mountain revealed a 24% year-on-year revenue increase in its data center segment, driven by 26% organic growth. This outperformance has led to an upward revision of full-year 2025 guidance, with data center revenue now expected to grow nearly 30% [2].

Iron Mountain's strategic expansion into the Middle East and North Africa (MENA) region, through a partnership with Ooredoo Group, is a strategic masterstroke. This move capitalizes on the high-growth frontier driven by digital transformation and data localization laws. The company's ability to secure high-margin, long-term contracts and its strong customer retention rate further highlight its competitive positioning [2].

Despite its debt of $16.37 billion, Iron Mountain's pre-leased model, AI-ready infrastructure, and defensive moat position it as a high-conviction long-term investment. The company's focus on energy efficiency and security, as demonstrated by its partnership with CBS Interactive, differentiates it in the competitive data center market [2].

For investors, Iron Mountain represents a rare combination of defensive characteristics and growth potential. Its strategic expansion into high-growth regions and alignment with AI-driven infrastructure trends suggest a re-rating is on the horizon. While its stock has underperformed peers like Equinix in the short term, its focus on high-margin, long-term contracts and its alignment with AI-driven infrastructure trends suggest a re-rating is on the horizon [2].

References:
[1] https://www.cnbc.com/2025/08/13/tencent-q2-earnings-report.html
[2] https://www.ainvest.com/news/iron-mountain-data-center-pivot-strategic-bet-long-term-high-growth-sector-2508/
[3] https://www.marketbeat.com/instant-alerts/filing-lpl-financial-llc-buys-40066-shares-of-barclays-plc-nysebcs-2025-08-17/