(Bloomberg) -- Citron Research returned to a familiar theme, that prisons are a bullish bet, in a report Monday, the firm’s first since its founder Andrew Left was charged with securities fraud in July.
GEO Group Inc., a private prisons operator, is poised to benefit from an expansion in prisons regardless of who wins the US presidential election in November, the firm wrote. Citron has published similarly bullish takes on Geo shares for more than a year. In June, the firm said in a post on X that the stock should be trading at more than $20, and in May it maintained a $30 price target on shares, which closed Monday below $13.
The stock is up 19% this year, but it’s fallen quite a bit since since July, when it was up 66% and trading at an all-time high. The shares climbed as much as 5.1% at midday Monday, but retreated to finish up 1.1%.
Representatives of Geo Group didn’t immediately respond to a request for comment
Left was charged with securities fraud in July, accused by the Securities and Exchange Commission and Justice Department of issuing inflammatory research reports and tweets to deceive investors and manipulate stocks in more than a dozen companies. He is accused of bringing in as much as $20 million in illicit profits from his trading activities. Left pleaded not guilty and has denied any wrongdoing.
The trial is scheduled to begin on Sept. 30, 2025, in Los Angeles federal court. Left has requested a motion to dismiss the case.
Citron Research did not immediately respond to a Bloomberg News request for comment.
©2024 Bloomberg L.P.