Cybersecurity company Infotrust Ltd (ASX: ITS) hasn’t been a winner for shareholders over the past year, with its shares falling by slightly more than 50%.

But according to the team at Bell Potter, the company is now well-positioned and could deliver significant upside.

I’ll get to their price target on the company shortly. First, let’s look at Infotrust’s recent full-year results.

Revenue growing strongly, but profit flagging

The company reported revenue of $64.1 million in FY26, up 9.8%; however, underlying EBITDA fell 20.3% to $2.7 million.

Including the loss the company booked on the sale of its cloud and communications division, Infotrust booked a net loss of $23.1 million.

The company said following that divestment, it was solely focused on cybersecurity.

The company said in its results report:

Following the divestment of the Cloud and Communications segment during FY26, the Company’s operations are exclusively focused on cyber security, digital resilience and associated technology services under the “Infotrust” brand. The Australian cyber security market continues to benefit from structural demand for cyber security and digital resilience, secure cloud adoption, data protection, identity security, AI governance and regulatory assurance. The market is also becoming more competitive and more consolidated, with customers seeking fewer, deeper technology partners that can provide trusted expertise, local accountability and outcome-based services.

Infotrust said acquisitions were expected to remain a “disciplined accelerator” for the business, which was now better focused.

The company added:

Infotrust’s strategy is to grow as a focused, trusted cyber-first technology services provider by deepening customer relationships, expanding cross-sell opportunities across the Company’s existing customer base, packaging services into clearer market-facing offers and investing in high-growth cyber capabilities, including identity, data security, AI security and cloud security.

Shares looking cheap, broker says

Bell Potter said in its research note to clients that the company’s financial results were close to its forecasts, while cash flow was better than forecast.

They said that Infotrust’s FY27 guidance for $80 million in revenue was better than their $73 million forecast, while the forecast EBITDA of more than $6 million was in line.

Bell Potter added:

We have upgraded our FY27 and FY28 revenue forecasts by 8% and now forecast $78.5 million and $88.3 million. That is, we are slightly under the budgeted revenue forecast of $80 million in FY27 for conservatism. We have, however, downgraded our underlying EBITDA forecasts by 4% and 9% due to a reduction in our margin assumptions.

Bell Potter has reduced its price target on Infotrust to 48 cents from 58 cents; however, this remains well above the share price of 25 cents at the time of writing.

Infotrust is valued at $44.5 million.

The post Bell Potter says this ASX small cap could rise 92% appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Infotrust. 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.

For investors looking to supplement their superannuation with sound investments, there are a few factors to consider. 

Three main priorities for retirees to focus on are: 

• Reliable income
• Diversification
• Enough growth to keep pace with inflation.

A common mistake is simply targeting the three highest-yielding ETFs, since high distributions often come with substantially higher risk.

This simple three-ASX ETF portfolio can provide a balanced allocation across these priorities. 

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This ASX ETF provides exposure to Australian companies that tend to pay relatively high dividends. This creates a reliable stream of investment income without needing to sell investments regularly. 

For Australian investors, the dividends can also come with franking credits. This may improve the after-tax income depending on individual circumstances. 

Importantly, VHY still provides exposure to shares, so it offers the potential for long-term capital growth that can help protect against inflation.

However, VHY’s role isn’t simply “high dividends” alongside superannuation.

In a retirement portfolio, its main attraction is that it can turn a portion of an Australian equity allocation into a relatively strong cash-flow-producing asset while retaining exposure to businesses that can grow over time.

Vanguard Australian Fixed Interest Index ETF (ASX: VAF)

This ASX ETF can play a vital role in a retiree’s portfolio by providing exposure to Australian government and investment-grade corporate bonds. 

This asset class is often considered less volatile than shares. 

Its primary purpose is to provide stability and regular income. This can help to reduce the overall risk of a portfolio that also contains equity ETFs. 

Having a defensive allocation like VAF can be particularly valuable in retirement because it provides an asset that can potentially be drawn on during periods of share-market weakness, reducing the need to sell shares when prices are depressed. 

While VAF is unlikely to deliver the same long-term growth as shares, it is a useful counterbalance to the higher risk and growth potential of equity investments.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The final complement to superannuation is the VGS fund. 

It provides broad exposure to international shares, particularly companies across major developed markets outside Australia. 

Its main purpose is to provide long-term growth and diversification, reducing reliance on the Australian share market, which is relatively concentrated in sectors such as banks and resources. 

This fund gives retirees exposure to a much wider range of global businesses and industries, helping spread investment risk across different economies and markets. 

While its value can fluctuate significantly and it does not provide the same focus on dividend income, it can provide valuable capital growth over the long term. 

This is vital to helping a retirement portfolio keep pace with inflation and supporting income needs further into retirement.

The post 3 ASX ETFs that are a perfect compliment to your superannuation appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in Vanguard Msci Index International Shares ETF. 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 Vanguard Australian Shares High Yield ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is a popular and tax-effective way of building wealth for retirement.

Many Australians realise the importance of accumulating a big enough nest egg that compounds over time. 

But did you know you can also use your superannuation to invest in ASX shares and generate a consistent passive income once you transition to the pension phase?

But exactly how much super do you need to earn your ideal passive income?

Let’s take a look, using $1,000 per week as an example.

How much do I need in my superannuation to earn $1,000 per week in passive income?

First, you need to calculate what $1,000 in passive income every week totals over the entire year.

So, $1,000 x 52 = $52,000.

Then you need to divide your annual passive income ($52,000) by the dividend yield of your overall investment portfolio.

For example, $52,000 ÷ 2% = $2.6 million (that’s the portfolio size you’d need).

Of course, the answer varies significantly depending on the dividend yield you’ll be using. As your yield increases, the superannuation balance you’d need to earn your $1,000 weekly passive income, goes down.

Remember, most ASX dividend shares pay dividends on a semi-annual or annual basis. This means that while you could target the equivalent of $1,000 per week in passive income, you won’t actually receive the money on a month-by-month basis, but instead in a lump sum every six or 12 months.

What superannuation balance would I need for a 3-5% yielding portfolio?

Say your overall portfolio has a yield of around 3%, you’ll need a balance of around $1.73 million to earn your $1,000 per week ($52,000 per year) of passive income.

Then, if your portfolio yields closer to 4%, you’d need around $1.3 million.

And if your portfolio yields a little higher, around 5%, you’d need more like $1.04 million to earn the same amount.

What if I wanted to go for a higher yielding portfolio, around 6% or 7%?

At 6%, you’d need a superannuation balance of around $867,000 to earn the same $1,000 weekly passive income amount.

Increase that to a 7% yield, and you’re looking at closer to $743,000.

And is it possible to go for an even higher yield, around 10%?

Yes, it’s still possible to earn from a 10% yielding portfolio, but there are significantly fewer options available. 

The higher yield also comes with a higher element of risk, which translates to a lower balance for the same income.

If your portfolio yielded 10% and you wanted to earn $1,000 per week, you’d need a superannuation balance of around $520,000.

When it comes to ASX dividend shares, high-yielding shares could be cyclical businesses that fluctuate significantly with market cycles, niche companies with strong cash conversion, or they have discounted share prices. 

It doesn’t mean high-yield shares should be avoided, but rather, they should be part of a diversified portfolio rather than account for the entire portfolio.

Ok, how could I create a diversified portfolio?

If you plan to earn $1,000 per week off a 5% yielding portfolio, you’d need a balance of around $1.04 million.

That doesn’t mean that every investment in that superannuation portfolio has to be 5%. It can be a variation which equates to a combined 5% yield overall.

You don’t need to invest the whole sum in one go either. Start with a monthly investment and let compounding do some of the hard work for you.

For a diversified portfolio, my tip would be to consider splitting your portfolio between different sectors and yielding shares.

You could look to divide your portfolio equally between 3%, 4%, 5% and 6% yielding shares. Overall, this would give a total overall portfolio yield of around 5%.

Alternatively, you could invest around half of your portfolio into 6% yielding shares, another 40% into 4% yielding ASX shares, and invest the remaining 15% in 5% yielding shares. Again, this would total around a 5% portfolio overall.

The post How much is needed in superannuation for $1,000 in weekly passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.