Miller Tabak analyst Stephen Anderson has raised his rating on shares of Cracker Barrel Old Country Store to 'buy' from 'hold.' His new price target for the stock, which has retreated 10 percent to about $99 in the past three months (Ticker: CBRL), is $114.
The fourth-quarter results of Corrections Corp. of America shouldn't contain many surprises, says Avondale Partners analyst Kevin Campbell, who has wrapped up his latest set of channel checks. The expected drop in inmate counts, he says, won't be as big as expected, which means revenues for the quarter should top $416 million. Campbell expects CCA's EPS to come in at 42 cents versus a consensus of 41 cents. Over at Barclays, meanwhile, Manav Patnaik has reiterated his 'outperform' rating but lowered his target for CCA (Ticker: CXW) to $39 from $45.
Analysts at CRT Capital have begun covering shares of locally based prison management company Corrections Corp. of America and its main publicly traded competitor, GEO Group. The firm thinks GEO presents a better opportunity right now and has rated that stock (Ticker: GEO) a 'buy' with a price target of $41, up more than 20 percent from its current level. CCA shares (Ticker: CXW) get a 'fairly valued' rating and a $35 target, about a dollar above their Friday close.
Arizona Department of Corrections Director Charles Ryan plans to ask state legislators to speed up the schedule for him to place 1,000 inmates at a Corrections Corp. of America facility. Initially planned to take place across two years, Ryan says overcrowding at other facilities calls for a one-year deployment — even as a number of sheriff's offices say they'd be willing to take on the inmates.
Indiana officials have signed a three-year extension of their contract to outsource inmate health care to Brentwood-based Corizon. The 28,000-person deal comes with two renewal options of three years each and builds on a relationship the two parties have had since 1997.
The Human Rights Defense Center, a nonprofit advocating for prisoners' rights, is calling on Corrections Corp. of America to find ways to lower the phone rates inmates pay, even if it means giving up some of its revenues. The group has filed a resolution for next spring's shareholder meeting asking CCA, among other things, to put in place a policy saying it won't accept commissions from prison phone operators, noting that eight states have passed laws banning such payments.
In a short response, CCA officials said the company's board is still evaluating the shareholder proposals in front of it and will comment soon. But they did note that "inmate telephone services are not comparable with the landline and mobile telephone services available to members of the public" and that CCA is required to build in security features such as monitoring and recording.
Here's the resolution in full.
Local Avondale Partners analyst Kevin Campbell has downgraded shares of Corrections Corp. of America to 'market perform' from 'market outperform' and trimmed his target to $36 from $38. Campbell says the move, which leaves less than 5 percent of upside for CCA (Ticker: CXW), is predicated on a lack of catalysts — specifically that California officials appear unlikely to pick up many more CCA beds. That leaves the company fairly valued at 14 times its next-year adjusted funds from operations. CCA shares are down about 2 percent this morning and off some 5 percent year to date.
- BRASWELL, ROBERT
- GARRETT, JOHNNY C EXECUTOR; GARRETT, JOHNNY C IV EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, TIMOTHY M EXECUTOR
- GARRETT, TIMOTHY M EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, JOHNNY C EXECUTOR; GARRETT, JOHNNY C IV EXECUTOR
- GARRETT, JOHNNY C IV EXECUTOR; GARRETT, JOHNNY C EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, TIMOTHY M EXECUTOR