While 4Q sales flows remained elevated, Morgans highlights a solid increase in sales inflows in recent quarters and ongoing solid business momentum.

The broker's FY23 and FY24 EPS forecasts for Generation Development fall by -3% and -5%, respectively, on higher investment bond (IB) outflow forecasts, but a valuation roll-forward of the financial model results in an unchanged $1.42 target.

The analyst likes the compound earnings growth story and retains an Add rating.

Sector: Insurance.

Target price is $1.42.Current Price is $1.29. Difference: $0.13 - (brackets indicate current price is over target). If GDG meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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