UPDATE: Stifel Nicolaus Intitates Iron Mountain at Buy (IRM)

Stifel Nicolaus is out with its report today on Iron Mountain IRM, initiating IRM at Buy. In a note to clients, Stifel Nicolaus writes, "We are initiating coverage of Iron Mountain Inc. with a Buy rating and $39 target price on the shares. Our $39 target price assumes that the current EV/TTM EBITDA valuation carries forward to 2013 (implying a $44 stock price), discounted back a year by 13%. Iron Mountain is the premier records storage company in the world, with dominant market share in the U.S. and a strong presence globally. Our Buy rating is predicated on the assumption that management will be making significant cash distributions to shareholders during the next twelve months in the form of share repurchases. Potential for REIT conversion is an additional embedded option, in our view, which could present the potential for material upside in the share price, should conversion become feasible." Shares of IRM closed Monday at $32.66.