Iron Mountain (NYSE:IRM) is moving in the wrong direction today as a top analyst changed its rating on the company’s stock.
Iron Mountain News: Why IRM Stock Is Sliding Lower Today
Source: Shutterstock
The Boston, Mass.-based enterprise management service may have issues in the horizon, according to Bank of America Merrill Lynch, which expressed concern on the business’ lowered pricing for its recycled paper. Analyst Michael Funk slashed his rating on IRM stock from neutral to underperform.
Additionally, Funk now sees Iron Mountain’s share at a price target of $25 from $33–the former figure is 17% below the current levels. The analyst also mentioned that selling recycled paper accounts to a small chunk of the brand’s revenue, yet recent data revealed sharp declines in pricing during the most recent quarter, which have birthed an “insurmountable headwind” to 2019 guidance.
InvestorPlace – Stock Market News, Stock Advice & Trading Tips
Funk included in his report that the decreased price target is a reflection of a prediction of negative estimate revisions. Iron Mountain’s 2018 annual earnings report included considerable declines in the cost of paper, which may have a negative effect on revenue and results of operations.
The business is a global leader in storage and information management services that also announced on Thursday that it is expanding its Data Restoration and Migration Services (DRMS). It will include customers on the hunt to migrate tape-based data into Amazon Web Services (AWS).
IRM stock is sinking about 7.5% Thursday. Shares then slid a tad more after hours.
More From InvestorPlace
- 7 A-Rated Stocks to Buy for the Rest of 2019
- 10 Best Stocks for 2019: A Volatile First Half
- 7 Retail Stocks to Buy for the Second Half of 2019
- 10 Stocks to Sell for an Economic Slowdown
The post Iron Mountain News: Why IRM Stock Is Sliding Lower Today appeared first on InvestorPlace.