Wedbush upgrades CoreCivic on need for ICE beds under Trump

Wedbush analyst Jay McCanless upgraded CoreCivic (CXW) to Outperform from Neutral with a price target of $30, up from $19.the analyst tells investors in a research note. Given recent commentary from the Trump administration’s transition team, Wedbush now believes the need for incremental Immigration and Customs Enforcement beds could be higher than previously expected, and that this need for beds could result in a reactivation of CoreCivic’s lost South Texas contract, the analyst tells investors in a research note. The firm also believes that a potential uptick in EBITDA could lead to an acceleration of share repurchase activity, which has been on hold following the loss of South Texas. Although CoreCivic shares have already seen notable appreciation since the election, the potential acceleration of EBITDA growth should warrant a higher multiple, contends the firm.