
GEO Group (GEO) Stock Forecast & Price Target
GEO Group (GEO) Analyst Ratings
Bulls say
The GEO Group Inc. has experienced a notable increase in detentions, rising approximately 5,000 inmates sequentially to reach 56,400, indicating a robust demand for its secure services. The company has revised its Managed-Only revenue projections for FY25 and FY26 upward to $630 million and $659 million respectively, reflecting the positive impact of the USMS contract. Additionally, a forecasted 60% growth in non-residential units could potentially enhance FY26 AEBITDA by around $80 million, or 14%, further supporting a favorable financial outlook for the company.
Bears say
The GEO Group Inc has revised its FY25 adjusted earnings per share (EPS) estimate down to $0.82 from $0.84 and has decreased its revenue forecast to $2.50 billion from $2.52 billion, primarily due to the Lawton facility disposition. Additionally, the company's reliance on proceeds from this disposition, along with an expectation of $150 to $175 million for debt reduction, raises concerns about its financial stability, despite projections suggesting a potential net debt to adjusted EBITDA ratio below 3x. Furthermore, there are increasing risks from bank regulators regarding lending to the sector due to "reputation risk" and significant political pressures that may hinder the company’s ability to secure Federal contracts and necessary funding.
This aggregate rating is based on analysts' research of GEO Group and is not a guaranteed prediction by Public.com or investment advice.
GEO Group (GEO) Analyst Forecast & Price Prediction
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