JonesResearch starts CoreCivic with Hold on balanced risk/reward

JonesResearch analyst Jason Weaver initiated coverage of CoreCivic with a Hold rating and no price target. CoreCivic is one of two publicly-listed operators of private corrections facilities in the U.S., the analyst tells investors in a research note. The firm says undocumented migration trends and enforcement efforts remain the most impactful drivers of revenues and profitability for CoreCivic and the industry overall since 2020. Despite potential headwinds from the 2024 election, Jones looks for greater certainty regarding the future of Immigration and Customs Enforcement’s budgets and contracts with the CoreCivic, a plan to regain lost revenues from the closure of the Dilley, Texas facility, or over the long run, a plan to further diversify the revenue mix by growing electronic monitoring business. It sees a balanced risk/reward at current share levels.