CoreCivic (CXW) Stock Forecast & Price Target

CoreCivic's financial outlook is bolstered by significant projections for FY25, including an adjusted EPS increase to between $1.07 and $1.14, up from a prior range of $0.83 to $0.92. Additionally, funds from operations (FFO) per share are expected to rise to a range of $1.99 to $2.07, and EBITDA is anticipated to reach between $365 million and $371 million, reflecting strong operational performance connected to the activation of idle bed capacity. The company's growth strategy is further supported by the anticipated completion of new facilities and ongoing improvements in occupancy trends, which together enhance its revenue-generating potential beyond the already substantial $200 million target.

CoreCivic Inc faces significant financial pressures due to heightened concerns over reputation risk, which may hinder the company's ability to secure necessary funding through debt and equity capital, particularly as ESG-focused investors increasingly shun the sector. Additionally, the company's reliance on contracts with governmental authorities poses a risk of lower revenues and earnings, as the inability to secure or retain these contracts could impact financial stability. While leverage appears to remain within the company's target range, fluctuations in occupancy trends and share repurchase activity may further complicate its financial outlook, highlighting ongoing uncertainties in its operational environment.