GEO - The GEO Group Inc. (GEO) - NobleCon 18 Presentation Notes

NobleCon 18. GEO CFO Brian Evans presented at NobleCon 18. The Company highlighted its leading market position, dependable cash flows, and potential market opportunity. A rebroadcast is available at https://noble.mediasite.com/mediasite/Catalog/Full/4ec6170801b441318e66ea53d53540a421.Title 42. Government officials continue to give credence to a projected massive surge once Title 42 is lifted. Most recently, ICE said it is expecting a "historic" surge in migration at the border. In an April 8th court filing, the agency stated, "ICE is preparing to...respond to an historic border surge, with projections forecasted to triple current arrivals."Context. March border encounters hit 221,303, the highest level over the past three years, with the annualized rate now running well in excess of two million. While the Border Patrol has been encountering about 7,000 migrants per day, DHS is projecting up to 18,000 per day once Title 42 is lifted. If these forecasts come to fruition, demand for beds supplied by GEO could increase dramatically.Alternatives to Detention. ICE is preparing for up to 600,000 enrollees in its ATD programs by year-end, according to news reports, up from 215,000 enrolled today. As the largest purveyor of ATD solutions to the government, such a surge should benefit GEO, in our view.Favorable Risk/Reward. We continue to believe GEO shares represent a favorable risk/reward situation. We are maintaining our Outperform rating and a $15 per share 12-month price target. While COVID and the political rhetoric remain headwinds, there are limited alternatives to GEO's services and we believe the Company's real estate assets and high quality contracts eventually will be properly valued. Read More >>