Morgans updates ratings on Pantoro Gold and Generation Development shares

These ASX 200 shares were star risers in 2025. What does Morgans think now?

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ASX 200 companies have begun releasing quarterly and half-yearly updates ahead of the official reporting season next month.

Among them last week were Pantoro Gold Ltd (ASX: PNR) and Generation Development Group Ltd (ASX: GDG).

Morgans took at a look at their reports and updated their ratings and 12-month share price targets on these ASX 200 shares.

Let's take a look.

Broker recommends trimming Pantoro Gold shareholdings

ASX 200 gold miner Pantoro Gold released its quarterly production update last week.

Pantoro Gold reported 22,071 ounces of gold production during the December quarter.

Pantoro sold 22,473 ounces at an average realised price of A$6,077 per ounce and an all-in-sustaining-cost (AISC) of A$2,571 per ounce.

The gold miner reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $83.6 million for the three months.

Morgans said a 12% quarterly increase in production was not enough to inspire confidence that Pantoro would meet its FY26 guidance.

Pantoro said it expects production to improve and finish the year at the lower end of the guidance range of 100,000 to 110,000 ounces.

Morgans is sceptical, commenting:

On a half yearly basis, PNR have only delivered 39.6% of ounces using the guidance midpoint of 105koz, despite this guidance being reiterated, although is expected to be at the lower end.

We update our model for the result and reiterate our TRIM rating, price target A$5.00ps (previously A$5.02ps).

Amid a 65% rally in the gold price last year, Pantoro Gold was the best performing ASX 200 mining share for growth, rising 220% in 2025.

The Pantoro Gold share price closed at $5.40, up 4.85% on Friday.

Buy rating maintained on ASX 200 financial share

Generation Development Group also released its December quarter results last week.

Generation Development Group is a market leader in retirement and investment solutions, including bonds.

The company posted a record December quarter with total funds under management (FUM) up 36% year-over-year to $34.5 billion.

Morgans appreciated the record investment bond sales but noted that Evidentia FUM came in 2% below Visible Alpha consensus.

The broker said:

In our view, the IB performance made this a positive quarterly result overall, albeit the market clearly wants to see Evidentia FUM growth gain traction.

We lift our GDG FY26F/FY27F EPS by 1%-2% with increases in our IB sales and FUM growth targets offsetting slight downgrades to our Evidentia FUM growth levels.

Morgans lifted its price target on Generation Development shares slightly from $7.95 to $7.97.

The broker added:

We think GDG has a great story, and management has executed well over time.

With the stock trading at a >20% discount to our target price, we maintain our Buy recommendation.

Generation Development Group shares experienced the best capital growth of ASX 200 financial shares in 2025, rising 66%.

The Generation Development Group share price closed at $5.52, down 2.3%, on Friday.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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