Movers and SHAKERS
CoreCivic, Inc. (CXW)
Post Call Commentary and Updated Guidance
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.
Opportunity Exists. We continue to believe significant opportunity exists for CoreCivic to increase overall occupancy levels at its facilities. Rescinding of Title 42 and relaxation of Covid imposed occupancy restrictions are two of the key drivers. Management noted a return to pre-Covid occupancy levels could add some $40+ million of EBITDA.
Capital Allocation. The Company is currently in negotiations on a new credit facility, which management hopes to complete soon. Notably, management indicated only needing a facility one-quarter to one-third the size of the existing $1 billion facility. Once the credit facility is completed, we anticipate CoreCivic to implement alternative capital allocation strategies, including share repurchases ...
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.