Reasons Why Iron Mountain (IRM) is Strongly Favored by Hedge Funds

Iron Mountain Incorporated (NYSE:IRM) is one of the most favored real estate investment trusts according to Hedge Funds.

By the close of play on January 16, consensus sentiment was moderately bullish towards Iron Mountain Incorporated (NYSE:IRM). Based on a 1-year median price target of $125.25, the stock offers more than 30% upside from the prevailing level. It has received coverage from 6 analysts, 5 of whom have assigned Buy ratings, and just 1 analyst has given a Sell call.

On January 7, Tobey Sommer from Truist Financial also reaffirmed his optimism towards Iron Mountain Incorporated (NYSE:IRM). He assigned a Buy rating to the stock with a $110 target price, yielding an almost 15% upside for investors.

Sommer has based his rating on the potential reacceleration of data center megawatt leasing, expected sometime during the final quarter of 2026. He also forecasted strong financials for 2026, as roughly $150 million of restructuring costs associated with Project Matterhorn are likely to roll off during the year.

Sommer acknowledged a leading market position for Iron Mountain Incorporated (NYSE:IRM) within a highly fragmented IT asset disposition segment, as part of his broader optimism for this $55 billion market.

Iron Mountain Incorporated (NYSE:IRM) is a hybrid REIT that specializes in information security & management, data centers, digital transformation, and asset lifecycle management. It operates both physical information storage and digital storage centers. Through its digital transformation functions, the company converts physical assets such as tapes, paper records, and other media into digital formats. It partners with 95% of the Fortune 1000 companies across more than 60 countries.

While we acknowledge the potential of IRM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.