Shares of Cornell Companies (NYSE:CRN) are on a six-month prison break, and investors aren’t about to issue an all-points bulletin.

Since sinking to $15.69 on March 10, the stock of the Houston-based provider of correction, detention, education, rehabilitation and treatment services for adults and juveniles has been on the run to higher ground. Cornell’s shares hit a 52-week high of $28.42 on Aug. 14, and since then have traded slightly below that level, closing Thursday at $27.66.

Cornell Companies shares have gained about 19% in value this year, but other prison operators aren’t faring as well: larger competitors Corrections Corp. of America (NYSE:CXW) and Geo Group (NYSE:GEO) are down 11% and 15%, respectively.

Two analysts surveyed by Thomson Reuters have Cornell Companies rated “outperform,” although a third, Cooley May of Macquarie Research Equities (USA), issued a “neutral” rating and a $24 price target. The Thomson Reuters median price target is $31.

Kevin Campbell, senior analyst with Avondale Partners, raised his price target Aug. 11 to $31 from $28, while keeping his rating at “market outperform.” In a telephone interview, he noted that privately operated prisons are likely to continue to gain favor, and that Cornell has a strong pipeline for growth.

“There is a big disconnect between the supply of beds and the demand for beds,” Campbell said. “State prisons are operating at about 105% of capacity, and federal facilities are at 137% of capacity.” And with more than 2.3 million Americans incarcerated, Campbell said, “Given the current economic environment … it’s difficult to justify building more prisons if your other services, such as healthcare, . . .

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