** Shares of Australia's Generation Development Group GDG.AX rise 1% to A$5.675

** Macquarie initiates coverage of diversified financial services co with an "outperform" rating and a target price of A$6.70, citing growth potential across segments

** Brokerage says after recent acquisitions, co is the market leader in the high-growth managed account sector, adding GDG's managed account segment is set to drive its next stage of growth, noting co's forecast of 15% CAGR in funds under management from 2024-30E

** Says legislative changes including tax reform and superannuation changes are likely a tailwaind for co's Generation Life segment, which provides investment bonds and annuities

** Sees medium-term potential for operating leverage across all segments through platform scalability and efficiency

** Rating also supported by co's recurring revenue model across each segment

** Stock up 59.9%, YTD

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))