Barclays Maintains an 'Overweight' on The Geo Group (GEO); 3Q11 Post-Call: Still Waiting on AZ & FL Contracts; UK Stepping Up its Game

Barclays maintains an 'Overweight' on The Geo Group (NYSE: GEO) price target lowered $3 to $25.00.

Barclays analyst says, "Conference Call Takeaways: Business appears to be chugging along with an attractive industry pipeline, albeit still slow in materializing. Domestically, we await the AZ (4Q'11) and FL (4Q'11/1Q'12) contracts. Internationally, UK seems to be stepping up its game by looking to award 9 managed-only contracts (~6,000 beds) in 1H'12 (which will be followed by 10-15 more facilities or 10,000 beds in 2013); while South Africa has finally cancelled its RFP for 6-12,000 new beds (after almost 3 years of delays). UK also has a 20K-person EM contract coming up next year. NZ new build expected in 1Q'12."

"Bottom-Line: Longer term, remember that GEO will not only benefit from domestic adult bed opportunities (like CXW), but also from (1) international contracts and (2) growth in its GEO Care division (via residential services and electronic monitoring)."

For more ratings news on The Geo Group click here and for the rating history of The Geo Group click here.

Shares of The Geo Group closed at $17.52 yesterday.

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