UPDATE: Dawson James Downgrades The GEO Group to Market Perform on Valuation

Dawson James reduced its rating on The GEO Group GEO from Market Outperform to Market Perform and removed its previous $27.50 price target. Dawson James commented, "GEO shares have performed very well this year, due to positive anticipation of a potential conversion to REIT status either in 2013 or 2014, steady and on-track revenue and earnings reports, and most recently the potential of a near-term special dividend. As such, GEO shares have met and exceeded our price target of $27.50, and although valuation metrics related to our four-stock comparable company analysis would suggest that GEO is undervalued (especially in terms of the price/earnings ratio for 2012E), we are going to downgrade these shares to Market Perform from Market Outperform (Buy) until such a time as the full impact of the potential REIT conversion and/or special dividend on 2013 estimates can be evaluated." The GEO Group closed at $29.77 on Monday.