Wedbush Morning Call - Jul 07 2026 7:05AM

Research evidence excerpt

Wedbush Morning Call - Jul 07 2026 7:05AM

term outcome versus a 100% take-private. Next catalysts: confirmation of a formal process or sponsor, and the SES deal

close in 2H'26.

● CoreCivic, Inc. (CXW - $31.03) Sells Two California ICE Detention Facilities to DHS for $1.5 Billion; Retains Management

Contracts. With leverage now meaningfully reduced, we see room for CXW to lean into buybacks (covenants permit

unlimited restricted payments below 1.50x secured/2.00x total leverage) and additional bolt-on M&A similar to Clinical

Solutions Pharmacy. Continued ICE detention demand under the current administration remains the core tailwind; watch

The GEO Group, Inc. (GEO) as the direct peer readthrough, and California's AB 1633 gross-receipts tax proposal as the key

state-level regulatory risk to monitor for both names.

● Rogers Communications Inc. (RCI - $45.08) Signs Agreement to Buy Kilmer's Remaining 25% MLSE Stake for C$4.35 Billion,

Reaching 100% Ownership. We would expect the minority-stake sale process, rather than the MLSE buyout itself, to be

the more significant re-rating catalyst, as it could crystallize a sum-of-the-parts valuation gap between RCI's telecom and

sports/media assets. Readthrough: BCE Inc. (BCE), as the prior MLSE co-owner now positioned as a content licensee rather

than equity holder.

● Versant Media Group, Inc. (VSNT - $37.95) Announces $530 Million Cash Acquisition of Golf/Sports Tech Platform Full

Swing; Expands Golf Channel Ecosystem. We view this positively as a differentiated, less linear-TV-dependent growth

vector consistent with the 33% non-pay TV mix target, though $530M in cash is a large single-name commitment

for a company still working through legacy cable decline (per Q1'26 results), and investors should watch integration