Corrections Corporation of America (CXW) PT Raised to $34 at Canaccord Genuity

Canaccord Genuity raised its price target on Corrections Corporation of America (NYSE: CXW) to $34.00 (from $30.00) while maintaining a Buy rating.

Analyst Michael Kodesch commented, "CXW's massive beat in the quarter, the subsequent guidance raise, and the official confirmation of Jeff Sessions were met with investor enthusiasm in the post-print trading hours, as the stock was up over 8% at one point before trading off slightly to end the day. While the new Attorney General drives incremental confidence in the sustainability of BOP business, fervor surrounding growth opportunities with both ICE and a handful of states was a focal point of the call, and several near-term opportunities seem to be on the horizon. Though we remain cautious regarding the CAR-16 procurement and general BOP trends, we're also steadfast in our belief that valuation, though historically elevated, still begets upside to the name, especially given the persisting discounted valuation relative to the overall REIT sector. As such, with incremental confidence in the underlying business, an attractive external growth profile, and a well-covered 5.4% dividend, we reiterate BUY, and raise our year-end 2017 PT to $34 on improved estimates."

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