rjm77me's Blog : CRN is a buy

Cornell tgt raised to $36 at Avondale Partners after receiving the CAR X from BOP (24.51 +1.55) : Avondale Partners notes that yesterday afternoon, Cornell Companies was awarded Criminal Alien Requirement X from the Federal Bureau of Prisons (BOP). The firm believes that this is a substantial positive for CRN as it results in filling 700 beds in its inventory and increases the per diem on 1,700 beds by approximately $10. As a result, the co is adjusting their 2010E EPS to $1.45 from $1.85 (consensus $1.92) to reflect the transition at the facility and establishing a 2011E EPS of $2.20 (consensus $2.20), nearly 20% growth from their prior 2010E EPS. The firm is also raising their price target to $36 from $31, which the firm notes still reflects more conservative multiples than its peers.