Barclays Maintains a 'Overweight' on Corrections Corporation of America (CXW); Raises PT Despite Judges Decision

Barclays maintains a 'Overweight' on Corrections Corporation of America (NYSE: CXW) price target of $38.00 (from $35.00).

Analyst, Manav Patnaik, noted that federal judges rejected California's request to raise the cap rate from 137.5% to 145%. Patnaik expected that most investors saw a decision coming in along these lines.

Despite the industry pipeline moving along slowly, and some argue the stock should trade at 15x as a REIT, Patnaik maintains his rated and estimates, citing the company's recent win in Arizona and continued push in Cali.

FY12/13 EPS estimate remain at $1.54/$1.69.
For an analyst ratings summary and ratings history on Corrections Corporation of America click here. For more ratings news on Corrections Corporation of America click here.

Shares of Corrections Corporation of America closed at $34.62 yesterday.

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