2 Reasons SunTrust Upgraded Corrections Corp Of America To Buy

SunTrust’s Tobey Sommer upgraded Corrections Corp Of America CXW to Buy with $20 price target on continued double-digit dividend and positive news flow to be mixed into the uniformly negative news of the last two months.

“We now assume that out-of-state business with CA goes to zero resulting from Prop 57 and BOP business approaches zero by 2019,” Sommer wrote in a note.

However, the analyst cut 2017 AFFO estimate to $1.70 from $1.89 and established estimates of $1.61 in 2018 and $1.50 in 2019.

At time of writing, shares of Corrections Corp Of America fell 1.61 percent to $13.45.