Wednesday, November 10, 2021
CoreCivic, Inc. (CXW)
Post Call Commentary and Updated Models
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.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Capital Allocation. Management noted the need to address the credit facility, with a goal of reducing the size of the line and extending the maturity, prior to committing to returning capital to shareholders. We anticipate actions such as share repurchases could be implemented by the end of the second quarter next year.
New Business? CXW remains in negotiations for the West Tennessee facility. Arizona remains a potential new award. Experiencing their own labor issues, some states have contacted CoreCivic about taking inmates. Over at ICE, we continue to believe there could be a significant increase in populations once Title 42 is rescinded …
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.