Wednesday, September 16, 2020
CoreCivic (CXW)
A Quick Turnaround for Cimarron Facility
CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
New USMS Agreement. Yesterday, CoreCivic announced the U.S. Marshals Service (USMS) had entered into an agreement to utilize the Company’s 1,692-bed Cimarron Correctional Facility. This facility was going to be idled due to decreased inmate populations from COVID and a reduced government budget in Oklahoma. The new management contract with USMS will allow the Company to transition the facility’s mission without significantly disrupting operations.
Details. The new management contract commenced on September 15th and has an initial term of three years, with unlimited 24-month extension options thereafter upon mutual agreement. CoreCivic expects to begin accepting offender populations into the facility on the contract commencement date, and to incur $0.4 million to $1.5 million in start-up expenses related to the activation of the new …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.