JonesResearch initiated coverage of Geo Group with a Buy rating and $18.75 price target. The company is one of two publicly-listed operators of private corrections facilities in the U.S., the analyst tells investors in a research note. The firm says undocumented migration trends and government enforcement efforts have been and remain the most impactful drivers of revenues and profitability for Geo and the industry overall since 2020. The 2024 election is likely to provide tailwinds for Geo as both parties have emphasized plans to increase strength at the border, which will require increased usage of privatized facilities, the analyst tells investors in a research note. Jones says Geo’s electronic monitoring and supervision segment may be the clearest growth driver for the business.
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