Doubling your money with an ASX share in the space of 12 months is not something that happens too often.

But Bell Potter thinks it could be possible with the one in this article.

Though, it is likely to be only suitable for investors with a high tolerance for risk.

Which ASX share?

The share that has caught the eye of Bell Potter is Kinatico Ltd (ASX: KYP).

It is a leading provider of know your people solutions to organisations in Australia and New Zealand. Its CVCheck business currently provides employment screening and verification services to over 10,000 repeat corporate customers.

The ASX share is also focused on the development and growth of a new SaaS-based business which provides real-time workforce compliance management and monitoring via a suite of software solutions.

Bell Potter notes that the macro backdrop is weak. However, it believes there will be limited impact on earnings given management’s ability to adjust its cost base. It said:

There is no change in our full year forecasts but we increase the revenue skew in FY27 to H2 given the weak macro backdrop and the likely continued lengthening of decision making and tender processes which was evident in 2HFY26. The risk is this continues into 2HFY27 as well but at this stage we assume the macro environment improves next half post a couple of likely interest rate rises this half. 

In theory this then translates into some enterprise wins for Kinatico Compliance (KC) and drives strong SaaS growth in 2HFY27. Importantly we also expect Kinatico to adjust its cost base over the course of FY27 so that there is little impact on earnings in both H1 and H2.

It then adds:

We now forecast a 1H/2H revenue split of $19.0m/$22.5m compared to $20.2m/$21.3m previously. This equates to growth of 8% in H1 and 28% in H2 and effectively assumes little if any new enterprise wins for KC in H1 but then a few reasonable wins in H2. The growth in each half is still being driven by strong double digit increases in SaaS revenue – 20% in H1 and 46% in H2 – while we continue to expect modest declines in the legacy checks revenue in both halves. 

The change in skew, however, means we now forecast SaaS revenue as a percentage of total revenue to remain flat at 62% in 1HFY27 relative to 2HFY26 but to then increase materially to 70% in 2HFY27.

Should you invest?

As I mentioned at the top, Bell Potter believes there could be significant upside on offer with this ASX share.

According to the note, the broker has retained its buy rating with a trimmed price target of 34 cents (from 36 cents).

Based on its current share price of 14.5 cents, this implies potential upside of over 130% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

While we are not changing our full year forecasts the increase in skew to 2HFY27 increases the risk profile so we adjust the key assumptions in our valuations accordingly. We reduce the multiple we apply in the EV/EBITDA valuation from 10x to 8x and increase the WACC we apply in the DCF from 10.6% to 11.0%. 

The net result is a 6% decrease in our TP to $0.34 which is still more than double the share price so we maintain our BUY recommendation. We note Kinatico recently announced an on-market share buy-back which is scheduled to commence on 5th October. The company has allocated up to $5m to the exercise and, to quote the company, “represents an opportunity to enhance the value of the remaining shares on issue.”

The post Guess which ASX share could rise 130% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Buy and hold investing can be a great way to build wealth over the long term.

But if you’re not a fan of stock picking, then it can all become too hard.

The good news is that ASX exchange traded funds (ETFs) are here to save the day.

They allow investors to buy large groups of shares in one fell swoop, removing the need to pick individual stocks.

But which ASX ETFs could be great buy and hold picks? Let’s look at five that could be worth considering for the next two decades.

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF to consider is the iShares S&P 500 ETF. It gives investors exposure to 500 of the largest listed companies in the United States.

That includes businesses involved in technology, healthcare, financial services, consumer products, industrials, and other industries. Holdings include Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and ExxonMobil (NYSE: XOM).

What makes this ETF attractive over a 20-year period is the quality of the companies it holds. Many have strong competitive positions, enormous financial resources, and the ability to keep investing in new products, technologies, and markets. 

That could make the iShares S&P 500 ETF a strong option for Australian investors wanting long-term exposure to some of the world’s most successful businesses.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF that could be worth buying and holding is the Betashares Nasdaq 100 ETF.

This hugely popular fund provides exposure to 100 of the largest non-financial companies listed on the Nasdaq exchange.

Many of these businesses are involved in areas such as artificial intelligence, cloud computing, software, semiconductors, ecommerce, and digital advertising.

Over the next two decades, these businesses could benefit from continued technological change across the global economy.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF could also be worth considering.

It invests in leading Asian technology companies, giving investors exposure to businesses involved in semiconductors, ecommerce, gaming, hardware, and digital platforms.

Asia is home to some of the world’s most important technology manufacturers and enormous consumer markets.

As the region’s economies develop and technology adoption continues, its leading companies could have significant opportunities to grow.

Betashares Global Cybersecurity ETF (ASX: HACK)

A fourth ASX ETF to consider for the next 20 years is the Betashares Global Cybersecurity ETF.

This fund invests in companies providing cybersecurity products and services.

These businesses help protect networks, cloud systems, devices, data, payments, and digital identities.

As more businesses adopt artificial intelligence, cloud computing, and connected technologies, keeping systems secure is likely to become increasingly important.

This bodes well for the companies held by this fund.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Finally, the VanEck Morningstar Wide Moat ETF could be a strong buy and hold option.

This fund focuses on US companies that have sustainable competitive advantages and are trading at attractive valuations.

These advantages can include strong brands, intellectual property, cost advantages, and customers that are difficult to lose.

This is a philosophy that has helped investors such as Warren Buffett build enormous wealth over time.

Over a 20-year period, owning quality businesses with the ability to protect their profits and compound earnings could be a very sensible approach.

The post 5 ASX ETFs for Aussie investors to buy and hold for 20 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Betashares Capital – Asia Technology Tigers Etf, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Nvidia, VanEck Morningstar Wide Moat ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you on the hunt for some growing ASX dividend shares to buy this week?

If you are, it could pay to hear what Bell Potter is saying about the two listed below.

Here’s why it is bullish on them:

CAR Group Limited (ASX: CAR)

Bell Potter is bullish on auto listings company CAR Group and sees it as an ASX dividend share to buy.

It believes the company has the potential to grow its earnings in the double-digits thanks to its strong pricing power and operating leverage. It said:

CAR delivered another strong result, with FY26 revenue increasing 10% to $1.25bn and EBITDA rising 9% to $699m despite a softer macro backdrop. We see a sustainable pathway to double-digit EPS growth over the medium term, supported by pricing power, international scale and operating leverage. Given its low PE and strong cashflow generation, the dividend is attractive at around 3% today and growing at 10% CAGR.

The broker expects this to underpin partially franked dividends of 94.5 cents per share in FY 2027 and 106 cents per share in FY 2028. Based on its current share price of $23.12, this would mean dividend yields of 4.1% and 4.6%, respectively.

Bell Potter has a buy rating and $34.60 price target on its shares.

Lovisa Holdings Ltd (ASX: LOV)

Bell Potter also thinks Lovisa could be an ASX dividend share to buy now.

Although it remains cautious on consumer spending, it thinks the fashion jewellery retailer is better positioned than most to overcome this. It said:

While we remain cautious on the current weak consumer landscape and investments into market share & store refits to mitigate competitive pressures in key markets, we see a higher tolerance re accessibility from a low price point perspective together with a strong gross margin. LOV stands out in our coverage as a global retailer scaling its presence from ~50 regions with strong US/UK performance with better efficiencies within the US store network.

Post the market sell-off, we think the current valuation at ~22x FY27e P/E (BPe) which is a ~20% discount to LOV’s recent mid-cycle P/E as BPe of 28.5x appears attractive, and we upgrade our recommendation to BUY.

As for income, Bell Potter is forecasting partially franked dividends per share of 98.4 cents in FY 2027 and 115.2 cents in FY 2028. Based on its current share price of $24.52, this equates to dividend yields of 4% and 4.7%, respectively. 

Bell Potter has a buy rating and $27.00 price target on its shares.

The post Top broker names 2 growing ASX dividend shares to buy now appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended CAR Group Ltd and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.