Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/stories/2002-05-30/lehman-cuts-cornell-to-buy

Markets & Finance

Lehman Cuts Cornell to 'Buy'


Lehman Brothers downgraded Cornell Cos. (CRN) to buy from strong buy.

Analyst Jeffrey Kessler says rival Corrections Corp. of America won a contract with the Federal Bureau of Prisons -- a three-year, $109 million deal to house 1,500 federal innmates in its Georgia facility. Kessler says there's no second 1,500-bed award being allocated at this time, as was hoped by Cornell management.

The company will now have to depend on near-term growth from the hoped-for federal detention facilities for aliens, and possible approval of a state facility in Alaska. This is a definite psychological damper for investors, following a tough period in which the company brought back a synthetic lease structure it set up on its balance sheet.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus