** Iron Mountain's IRM.N shares up 3.8% on Mon to $103.70, a nearly 3-month high, after Jefferies initiates coverage at 'buy', saying its strategic transformation isn't fully appreciated

** The REIT's shares well outperforming the S&P Real Estate index .SPLRCR, which is essentially flat on the session

** Jefferies assigns PT of $120, implying 20% upside to stock's last close

** Known for its records storage business, IRM has reinvented itself, transforming into a diversified information management and technology infrastructure leader, Jefferies analyst Jonathan Petersen wrote in note

** Growth businesses expected to drive 10%+ adjusted funds from operations growth into 2029 on secular tailwinds from artificial intelligence and digital infrastructure investment, Petersen said

** Data center guidance is conservative, Petersen said, adding he believes investors "underestimate the upside potential from incremental leasing and new starts"

** Now, of 12 analysts covering IRM, recommendation breakdown is 10 "strong buy" or "buy", 1 "hold" and 1 "sell"; median PT is $122, according to LSEG data

** Including the move on Mon, IRM shares down ~1% YTD vs 2% advance in SPLRCR

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com ; 1-646-279-6380))