Tuesday, January 11, 2022
CoreCivic, Inc. (CXW)
A Significant Win
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.
Arizona Win. Yesterday, CoreCivic announced that the Company was awarded a new contract with the state of Arizona for up to 2,706 adult male inmates to be housed at the Company’s 3,060 bed La Palma Correctional Center in Eloy, Arizona. This is a significant award for the Company, in our view, as it is the largest prison contract awarded in the private sector by any state in over a decade.
Contract Details. The contract has an initial term of five years, with one extension option for up to five years. The Company and Arizona Department of Corrections are currently working on a ramp plan that is expected to begin late in the first or early in the second quarter of 2022. Upon full utilization of the new contract, the Company expects to generate approximately $75 million to $85 million …
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.