Highlights

  • Macquarie issued an outperform rating on GDG with a target price of AUD 6.75.
  • Net inflows of AUD 1.6 billion were recorded during the December quarter.
  • Total funds under management reached AUD 34.5 billion, up 36% year on year.

Generation Development Group Ltd (ASX:GDG) has come under market focus after Macquarie Research issued an outperform rating on the stock, assigning a target price of AUD 6.75. The broker update might followed the company’s December quarter operational update, which outlined continued activity across managed accounts, client expansion, and platform development within its Evidentia business.

GDG Share Price Snapshot

On 5 February, Generation Development Group shares traded at AUD 4.83, down AUD 0.15 or 3.01% during the session. The stock remains below Macquarie’s target price, following the release of quarterly data covering net inflows, funds under management, and strategic initiatives completed during the period.

Broker Rating and Target Price

Macquarie Research issued an outperform rating on Generation Development Group, setting a target price of AUD 6.75. The rating followed an assessment of GDG’s operating update and progress across its managed account and advisory platform activities during the December quarter of FY26.

Net Inflows and Client Activity

During the December quarter, GDG reported net inflows of AUD 1.6 billion, representing a year-on-year uplift of more than 5% on normalised net inflows compared with the corresponding quarter in FY25. The company noted that quarterly inflows were affected by the timing of scheme launches, with several now scheduled for the second half of FY26.

Client activity increased during the period, with six bespoke SMA and MDA solutions launched, representing approximately AUD 1.6 billion in funds under advice. Additional new client wins represented a further AUD 1.8 billion in funds under advice, with schemes expected to launch during FY26.

Strategic Partnerships and Platform Expansion

GDG finalised a long-term strategic alliance with Ironbark, a firm supporting approximately 130 financial advisers. The alliance is designed to deliver coordinated investment solutions across asset consulting, managed accounts, portfolio implementation, and trustee services.

The company also continued expanding the number of platforms through which advisers can access its SMA solutions. In addition, IPL signed 10 advice firms under the Xplore/HUB24 transition arrangement, with potential funds under management exceeding AUD 1.5 billion from March 2026.

Acquisitions and Product Development

During the quarter, GDG completed the acquisition of Encore Advisory Group, adding practice management advisory capabilities to its offering. Product development milestones included Evidentia Global Private Markets exceeding AUD 100 million in funds under management, while Tailored Portfolios at Scale, developed with BlackRock, surpassed AUD 150 million in funds under management.

Total Evidentia funds under management reached AUD 34.5 billion as at 31 December 2025, representing a 36% increase compared with the prior corresponding period.

Generation Development Group’s December quarter update outlined progress across inflows, client growth, partnerships, and acquisitions. The update coincided with Macquarie Research issuing an outperform rating and setting a target price above the current trading level, placing GDG under increased broker and investor attention.

FAQ Section

Q1: What rating did Macquarie Research assign to Generation Development Group?
Macquarie Research issued an outperform rating on GDG.

Q2: What target price was set for GDG shares?
Macquarie set a target price of AUD 6.75.

Q3: How much were Evidentia’s total funds under management at the end of December 2025?
Total funds under management stood at AUD 34.5 billion as at 31 December 2025.