Corrections Corp Should Be Gotten - Analyst Blog
Corrections Corp. of America (
CNX) is the largest private owner and operator of correctional and detention facilities in the United States. The company owns and operates medium and maximum level security facilities for the US Federal government, 20 state agencies and numerous local agencies.
We reiterate our Buy rating on shares of CXW prior to the release of third-quarter results. Corrections Corp. holds a significant market share advantage over its peers, with a substantial pipeline of additional capacity scheduled to be added to the portfolio over the next two years. The company is the clear leader in an industry with a strong outlook, supported by favorable economic and demographic trends.
We consider the current price to represent an attractive entry point. Our target price equates to multiples of 27x and 22x our '08 and '09 EPS estimates, respectively. CXW will report Q3 results on 11/6/08.
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
iStockAnalyst will be liable for any loss or damage including without
limitation, indirect or consequential loss or damage, or any loss or damage
whatsoever arising from or arising out of, or in connection with the use of this
information. Please consult your investment advisor before making any investment
decision.
