Australia's Generation Development rises as Citi initiates coverage with 'buy'

Generation Development

15/01/2026 01:20

Updates

** Shares of Australia's Generation Development Group GDG.AX rise as much as 3.8% to A$6.260

** Citi initiates coverage of Australia's Generation Development Group GDG.AX with a "buy" rating and a A$7.50 target price, representing a 24.4% premium to the stock's last close

** Brokerage says GDG is positioned for structural tailwinds in the managed accounts division, forecasting funds under management to rise ~2.4x to A$70 billion ($46.72 billion) by FY28E

** Says the diversified financial company's recently acquired asset consulting business Evidentia is sharply outperforming due to its pricing, increasing scale and full-service partnership approach with clients

** Also sees co's investment bonds set for accelerating sales given inbuilt drivers, adding that the Division 296 tax tailwind could fuel demand for co's bonds products

** Among key risks facing firm, Citi flags lumpy qoq growth in funds under management, regulatory risks, and higher reinvestments

** GDG stock up 65.8% in 2025

($1 = 1.4984 Australian dollars)

(Reporting by Shruti Agarwal & Rajasik Mukherjee in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))