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.
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.
