It has been a fruitful year for many ASX financials stocks.
The S&P/ASX 200 Financials (ASX:XFJ) index is up almost 14% year to date.
Generation Development Group Ltd (ASX: GDG) has been one of those financials stocks steaming ahead.
The diversified financial services business has seen its share price rise from $3.47 per share in January, to a closing price yesterday of $7.28.
That represents a whopping 109% gain.
It has surpassed all time high after all time high in that span.
Many investors may look at that rise and think they have missed the boat. However the team at Morgans have upgraded their view on this ASX financials stock indicating there could be further growth ahead.
Here's what the broker said yesterday.
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Record performance
The company reported strong FY25 results including impressive growth in revenue, NPAT and assets under management.
The broker noted yesterday that GDG is off to a good start in FY 26 as well.
Morgans said GDG's 1Q26 business update saw a record Investment Bond sales performance (+A$333m) that beat market expectations.
The broker said other results were largely in line with expectations.
Overall, Morgans saw this as a solid enough quarterly performance by GDG, displaying ongoing robust operating momentum.
Based on this analysis, the broker lifted its EPS forecasts by +1%-3% on slight increases to both Investment Bond sales and Evidentia AUM forecasts.
Updated price target from Morgans
Speaking on the potential for further growth, Morgans said:
Our price target rises to A$8.01 on our earnings changes and a valuation roll-forward. We think GDG has a great story, and management has executed well over time.
With the stock trading at a >10% discount to our price target, we maintain our Accumulate recommendation.
Based on yesterday's closing price of $7.28, this indicates an upside of 10.03%. Not bad for a stock that has already doubled in 2025.
Morgans isn't the only broker with an optimistic view on this ASX financials stock.
Earlier this month, Bell Potter placed a buy rating and $8.20 price target on GDG shares.
This indicates an upside of 12.64%.
