After a 22% crash, this ASX 200 stock could be set to rise 74% according to Bell Potter

ASX 200 stock Generation Development Group Ltd (ASX: GDG) will be watched with a keen eye today after it crashed 22% on Wednesday. 

The ASX financials company provides investment bonds and investment-linked lifetime annuities which offer innovative and tax-efficient solutions for wealth accumulation, estate planning and generating regular income in retirement.

Following yesterday’s horror run, the ASX 200 stock is now down almost 40% year to date. 

For comparison, the S&P/ASX 200 Financials Index (ASX: XFJ) is up just over 3% in the same period. 

Why did the share price crash?

It appears investors were exiting their positions in this ASX 200 stock following the release of its March 2026 quarterly update.

It closed yesterday at $3.56 per share. 

Generation Development Group is the parent company of Evidentia Group and Generation Life  – two of its core operating businesses. 

Key highlights from Evidentia Group for the March quarter included: 

• Funds Under Management increased to $34.8 billion, up 30% vs the PCP
• Net Inflows of $1.4 billion for the quarter, including the transition of a mandate worth c. $0.3 billion. 

Management noted that underlying demand remains solid, with momentum improving through February and into March.

Meanwhile, Generation Life reported FUM of $5.3 billion at 31 March 2026, up 35% on the prior year ended 31 March 2025.

Generation Life also delivered quarterly sales of $375 million, up 57% on the previous corresponding period.

What did Bell Potter have to say?

Following the result and subsequent 22% crash, the team at Bell Potter provided updated guidance for this ASX 200 stock. 

The broker said overall, it was a mixed set of results. 

High level, the core business is seeing ongoing improvement while acquisitions show signs of softness. Market guidance now looks ambitious, but client momentum remained strong, and flagged mandates have started to contribute after being laid out. However, conversion delays have persisted.

Barring any sharp adverse market moves, we expect these delays to resolve. Outside of mandates Evidentia net inflows are performing in-line. Timing variability has had further pushback as a result of counterparties.

Price target reduction

Based on this guidance, the team at Bell Potter reduced its price target on this ASX 200 stock to $6.20 (previously $7.40). 

The broker has retained its buy recommendation. 

Despite lowering its price target, this still indicates an upside potential of 74% from yesterday’s closing price of $3.56. 

Bell Potter isn’t the only broker that sees upside for this ASX 200 stock.

Last month, the team at Morgans placed a $6.66 price target on the company, and eight analyst forecasts via TradingView place an average 12-month price target of $7.17 on the company. 

The post After a 22% crash, this ASX 200 stock could be set to rise 74% according to Bell Potter appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.