BUZZ-Citi initiates coverage of Generation Development Group with 'buy', flagging multiple growth drivers

Reuters
01/15
BUZZ-Citi initiates coverage of <a href="https://laohu8.com/S/GDG.AU">Generation Development</a> Group with 'buy', flagging multiple growth drivers 

** Citi initiates coverage of Australia's Generation Development Group GDG.AX with a 'buy' rating and an 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 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 co, Citi flags lumpy qoq growth in funds under management, regulatory risks, and higher reinvestments

** GDG added 65.8% in 2025, and is up 2.4% YTD

($1 = 1.4984 Australian dollars)

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))

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