It was a rough day of trading yesterday for ASX 200 stocks Generation Development Group Ltd (ASX: GDG) and Northern Star Resources Ltd (ASX: NST).
These two companies fell by 5.99% and 8.43% respectively.
After such a large sell-off, is this a buy the dip opportunity for investors?
Let's find out.
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Why the sell-off?
There was price sensitive news out of both ASX 200 stocks yesterday that led to the sharp decline.
Generation Development Group released December Quarter results.
This included a 36% increase in group funds under management (FUM) to $34.5 billion.
As The Motley Fool's Laura Stewart reported yesterday, the company maintained strong momentum across all divisions.
Despite this, the ASX 200 stock dropped almost 6% during the day's trade.
Meanwhile, Northern Star Resources shares fell following the release of its quarterly update.
All in all, the miner reported lower gold sales, revised FY26 guidance, and ongoing investment in major growth projects.
Are either of these ASX 200 stocks a buy?
The team at Bell Potter has issued new analysis on both of these ASX 200 companies following yesterday's announcements.
The broker noted that Northern Star Resources experienced production disruptions across several operating assets.
Bell Potter said whilst the result was disappointing, the information was priced into the stock following the 2 January update, with the company underperforming large-cap gold peers since then.
In its report, the broker said EPS changes include: FY26 +27% FY27 +6% and FY28 -1%.
For Generation Development Group, Bell Potter said the company delivered a mixed 2Q26 update which saw Investment Bonds beat expectation. However, Managed Accounts were softer than anticipated due to timing differences of new client entries and flows.
Price target adjustments
Bell Potter has maintained buy recommendations on both these ASX 200 stocks.
The broker has increased its price target of Northern Star Resources shares to $31.10 (previously $30.00).
After yesterday's rough day of trading, this indicates an upside of 18.8%.
Whilst the 2QFY26 report disappointed, we view the issues as being largely resolved/ one off, setting up a base for a stronger 2HFY26.
The broker decreased its price target on Generation Development Group shares to $7.90 (previously $8.40).
Despite lowering its price target, this indicates an upside of 39.82% after yesterday's sell-off.
Our Buy is unchanged and target price down on lower sector multiples and risked growth for lumpiness. We continue to see structural growth and strategic progress.
