Following Generation Development’s 3Q funds under management (FUM) update, Morgans assesses investment bond (IB) sales growth was robust. Also, the net inflow number of $120m exceeded the analyst’s forecast for $100m.
The broker estimates the recent FUM growth will start translating into higher leverage in FY23 and FY24. Upgrades to forecasts for the IB business were partially offset by lower estimates for the ramp-up in the annuity business. The target price rises to $1.88 from $1.81. Add.
Sector: Insurance.
Target price is $1.88.Current Price is $1.65. Difference: $0.23 – (brackets indicate current price is over target). If GDG meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
