Noble Financial Maintains Buy Rating for CoreCivic with $28 Target Price

Noble Financial maintains a Buy rating for CoreCivic with a price target of $28.00, citing the company's stable operations and potential growth opportunities. CoreCivic received a Buy from Wedbush in August but a Hold from TR | OpenAI in September. The company's one-year high is $24.99 and low is $12.13, with an average volume of 969.5K. Corporate insider sentiment is negative, with 66 insiders selling shares over the past quarter.

CoreCivic Inc. (CXW) reported robust financial results for the second quarter of 2025, significantly exceeding earnings expectations. The company posted an earnings per share (EPS) of $0.36, surpassing the forecasted $0.21 by 71.43%. Revenue also outperformed projections, reaching $538.2 million against a forecast of $499.02 million, surprising analysts with a 7.85% increase [1].

Following the earnings announcement, CoreCivic's stock price rose by 2.04% to $20.40 in aftermarket trading. The company updated its 2025 adjusted EPS guidance upward to a range of $1.07 to $1.14, reflecting confidence in continued operational efficiency and growth. CoreCivic's CEO, Damon Hinegar, highlighted the unprecedented environment with rapid increases in federal detention populations as a significant growth driver [1].

Key Takeaways:
- CoreCivic's EPS exceeded expectations by 71.43%.
- Revenue increased 9.8% year-over-year, driven by higher federal detention populations.
- Stock price increased by 2.04% in aftermarket trading.
- The company revised its 2025 adjusted EPS guidance upward.

Market Reaction:
Following the earnings release, CoreCivic's stock price increased by 2.04% to $20.40 in aftermarket trading. This upward movement reflects investor confidence in the company's strong financial performance and optimistic guidance. The stock has demonstrated remarkable strength with a 57.85% return over the past year. Analysts maintain a Strong Buy consensus, with price targets ranging from $28 to $38, suggesting significant upside potential [1].

Outlook & Guidance:
CoreCivic anticipates reaching mid-80% occupancy in 2026, with potential revenue from idle bed activation reaching $500 million annually. The company also revised its 2025 adjusted EPS guidance upward to a range of $1.07 to $1.14, reflecting confidence in continued operational efficiency and growth [1].

Risks and Challenges:
Regulatory changes could impact operational flexibility. Competition from other facility management companies remains a concern. Economic uncertainties may affect government budgets and contracts [1].

References:
[1] https://uk.investing.com/news/transcripts/earnings-call-transcript-corecivic-q2-2025-surpasses-eps-forecast-93CH-4209173