Generation Development Group's 75% increase in profit slightly beat the broker. A solid result reflects the benefits of strong sales and funds under management growth, the broker suggests, albeit tempered by various cost increases such as regulatory compliance and insurance.

The broker believes management is executing well and the company is in a strong position to deliver compound earnings growth over time. This is not reflected in a 22x forward PE, the broker suggests, which implies under-valuation of the growth profile. Add and 97c target retained.

Sector: Insurance.

Target price is $0.97.Current Price is $0.79. Difference: $0.18 - (brackets indicate current price is over target). If GDG meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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