GEO - Geo Group gets new Neutral rating at Wedbush as headwinds push against growth

FooTToo/iStock via Getty Images Wedbush begins coverage of Geo Group (GEO) with a Neutral rating due to two conflicting factors. While the company has a strong historical growth record and high level of operating profitability and cash flow, its industry faces headwinds from declining prison populations and political opposition to the business model, the Wedbush note says. The new rating aligns with the Neutral Quant rating and the SA Authors' average rating of Neutral (1 Very Bullish, 2 Bullish, 1 Neutral, 2 Bearish, 1 Very Bearish). GEO's total return falls 51% in the past year, lagging peer CoreCivic's decline of 33% and S&P 500's 34% gain as seen in chart below. SA Author Albert Lin explains what went wrong with his original thesis on GEO.

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Geo Group gets new Neutral rating at Wedbush as headwinds push against growth