In our recent Corporate Software report Kevin McVeigh of Credit Suisse First Boston explores Iron Mountain’s Growth Opportunities:

Mr. McVeigh: They have both domestic and international growth opportunities. Penetration rates tend to be low in both regions. What is unique about the model is that you get a fair amount of internal growth from its existing customers. Every year existing customers tend to generate higher levels of storage activity. If you layer in new sales opportunities and price increases, you get a model that has been growing 7% to 9% internally on an annual basis for a long time. We don’t expect that to change. One caveat is in 2009, the company reduced its internal growth target to 5% to 7%, but the 200 basis point reduction was due to a reduction in commodities in one of the less predictable business lines.

Now nothing is recession proof but a predictable business models like Iron Mountain’s works well in this macro environment .

This entry was posted on Tuesday, May 12th, 2009 at 9:43 am and is filed under Technology Stocks. You can follow any responses to this entry through the RSS 2.0 feed.