Shares of prison operator GEO Group (NYSE:GEO) gained more than 12% in today’s trading session. This can be attributed to an analyst upgrade from Wedbush analyst Jay McCanless, who changed his rating from Hold to Buy.
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McCanless cited the company’s electronic monitoring business as a tailwind after it grew 81% year-over-year. In addition, this segment is very profitable, with operating margins exceeding 50%. Furthermore, McCanless expects labor costs and supply to improve once a recession arrives.
Overall, Wall Street analysts have a consensus price target of $14.50 on GEO stock, implying 26% upside potential, as indicated by the graphic above.
