A Deeper Dive. We took a deeper dive into CoreCivic's ability to repay its debt. We believe the Company is well positioned to handle its debt under nearly any circumstance. Although the executive orders have increased uncertainty around CoreCivic's business, we continue to believe, for a number of reasons, that the USMS issues will ultimately be resolved in a manner that the Company can live with.A Stable Business. In spite of the year-in and year-out changes to its business, including the loss of major customers in the past, CoreCivic generates a remarkably stable level of cash flows. We believe the long-term nature of many of its contracts help isolate the Company from a massive run-off of business in a short period of time.A Critical Business. CoreCivic provides a critical service to its government partners enabling them to accomplish their missions in a cost effective manner. As we have mentioned before, the USMS does not own any beds to house its detainees. There just isn't thousands of such beds available and it would take years to build out such capacity. And with approximately one-third of all prison beds located in facilities past or at the end of their useful life, CoreCivic's ability to provide modern, cost effective facilities becomes even more important.Maintaining Outperform and $15 PT. We continue to believe CXW shares present a compelling risk/reward opportunity. While we wait for more clarity on the operating environment, we are maintaining our Outperform rating and $15.00 12-month price target. We continue to believe the services offered by CoreCivic can help its government partners to solve the complex issues they face.Read More >>