Barclays said on Friday that investors looking for stability in the market this early morning should consider buying record storage company Iron Mountain. The firm started Iron Mountain with an overweight rating and a price target of $58 per share, up about 21% from Thursday’s end. Barclays analysts highlight Iron Mountain’s valuation, records and information management business, which accounted for 88% of revenue last year, as well as new initiatives and ESG efforts. He highlighted that most client contracts have a period of one year, which gives the company the opportunity to increase prices at or above inflation. “IRMs combine short-term leases (which can revaluate with inflation) with long-term recurring revenue,” analyst Brendan Lynch said in the note. “The diversification of business sectors has reduced risk and created new avenues for growth, while efficiency initiatives have removed additional costs. Trading at a 23% discount on the S&P 500, we find the stock attractive.” He added that although valuations are under pressure due to rising interest rates and changes in sentiment, Iron Mountain “has proven resilient during the past few years, and new initiatives should accelerate growth relative to the past, given the stock’s modest re- Rating Guaranteed.” Iron Mountain’s core business is in paper document storage, but the company has expanded its offerings in recent years to diversify revenue streams and complement that core business. “We acknowledge that demand for paper storage is declining (we estimate 0-1% annually), but note that many industry verticals continue to grow; medical, legal, financial and government demand remains strong. “IRMs have had boxes for an average of ~15 years,” Lynch said.