Corrections Corp: Good Entry Pt

Corrections Corp. of America (CXW - Snapshot Report) 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. CXW currently maintains an inmate population of more than 77,000 at 66 facilities.

We reiterate our Buy rating on shares of CXW. The company 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 a multiple of 9.5x our 2009 EBITDA estimate. CXW is scheduled to report Q4 results on February 10, 2009.

Read the full analyst report on CXW