10:25 AM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target price by $6 to $78 on a forward P/FFO of 24.0x our 2024 FFO estimate, a premium to IRM's five-year average multiple (16.3x) due to improving fundamentals within asset lifecycle management (ALM) and tailwinds boosting data centers. We keep our 2024 FFO estimate at $3.27 and 2025's at $3.45. IRM reported Q1 2024 FFO of $0.74 vs. $0.71 on revenues that beat consensus by 2% [$1,477M vs. $1,453M]. Revenues rose 12% Y/Y (8% organic), with strength in both Storage (+9% Y/Y, 8% organic) and Services (+17% Y/Y, 10%). Adj. EBITDA rose 13% Y/Y with margins unchanged at 35.1%. We continue to expect EBITDA margins of 35.0%-36.0% in FY 2024. Data Centers continue to be a highlight for IRM as the sector benefits from AI-related tailwinds, leasing 30 additional MW in Q1 and realizing revenue growth of 26% Y/Y. ALM is also turning a corner, with revenue growth of 25% Y/Y as pricing power is improving. Leverage remained stable at 5.1x, while variable rate debt remains high at 24% of total debt vs. 20% Q/Q.