Lovisa Ltd (ASX: LOV) shares jumped sharply earlier this week after the jewellery retailer announced a solid uplift in profit and revenue.

But the shares remain about a third lower over the past 12 months, and the question remains: where to from here for the share price?

I’ve had a look at two brokers’ reports issued following the release of Lovisa’s results, and the good news is that both rate the shares highly, with bullish share price targets from each.

I’ll get to that shortly. Firstly, let’s look at the results in more depth.

Strong uplift in profits

Lovisa this week reported revenue of $938.8 million, up 17.6%, while net profit was up 10.7% to $95.6 million.

The company also bolstered its final dividend by 22.2% to 33 cents per share, 50% franked.

Chief Executive Officer John Cheston said:

Lovisa has once again been able to deliver strong global sales and profit growth, with the highlights being continued growth in the Americas and Europe and another exceptional Gross Margin performance. I would like to share my appreciation to the global team for their hard work in delivering these outstanding results and continuing the global momentum of the business.

The company’s gross profit was 18.4% higher in FY26, while gross margin was up 60 basis points to 82.6%, “representing a 270 basis point improvement on FY23 following multiple years of gross margin expansion”.

In terms of the start of the current financial year, Lovisa said total sales for the first eight weeks were up 16.4% while comparable same-store sales were up 3%.

The company added:

We continue to focus on opportunities for expanding both our physical and digital store network, with structures in place to drive this growth in existing and new markets and formats, with a long new store runway supporting continued store rollout momentum. Our balance sheet remains strong with available cash and debt facilities supporting continued investment in growth.

Lovisa shares looking cheap according to brokers

Morgans said the results were strong, with net profit coming in ahead of consensus estimates.

The broker added:

Lovisa has ambitious expansion plans, with significant white space opportunity for continued network expansion. Ongoing investment will be needed to expand Lovisa’s multinational network, but the company has the capacity to fund this, and we expect strong returns. We have an accumulate rating and $31.00 target price.

Morgan Stanley is even more bullish on the stock, with a $33.50 target price, compared to the price of $26.98 at the time of writing.

They said they saw a compelling bull case for the stock based on expansion in the total addressable market, extended store roll-outs, and an increasingly diversified business.

Lovisa is valued at $3.06 billion.

The post After a big jump this week, what are brokers saying about the Lovisa share price? appeared first on The Motley Fool Australia.

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• Why is this $3 billion ASX retail stock rocketing 19% today?

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 Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX Small-cap investing often comes with ambitious promises.

Companies may be chasing international markets, rolling out new technology, or pursuing rapid expansion. The potential can be exciting, but growth requires capital, and many smaller businesses run out of cash before that potential becomes reality.

That is what makes Smart Parking Ltd (ASX: SPZ) an interesting ASX small cap to examine.

The parking technology company has delivered record FY26 revenue, earnings, and free cash flow. Its international growth story is now being supported by tangible financial results.

Record earnings and cash flow

Smart Parking helps property owners manage car parks using automatic number plate recognition (ANPR) cameras, software, and payment technology.

It may not be glamorous, but the latest numbers are becoming difficult to ignore.

FY26 revenue increased 63% to $126 million, while adjusted operating earnings (EBITDA) rose 50% to $30.8 million. Adjusted free cash flow also climbed 56% to a record $20 million.

That cash generation separates Smart Parking from the more speculative end of the small-cap market. Rather than relying entirely on new capital or distant forecasts, the existing business is helping fund new sites, technology investment, and international expansion.

Smart Parking finished June with $17.4 million in cash, excluding funds held on behalf of customers. Since then, it has acquired US-based American Parking and announced an on-market share buyback of up to $5 million.

How much growth was organic?

Acquisitions have contributed to Smart Parking’s expansion.

Its February 2025 acquisition of US parking operator Peak Parking provided a full-year contribution in FY26, compared with only four months in the previous year. Headline growth should therefore be considered in that context.

Even so, the result contained encouraging evidence of organic progress. Management said 72% of the revenue uplift came from organic growth, including expanding its ANPR network and improving debt resolution processes.

Smart Parking added more than 500 new ANPR locations during the year, lifting its network to 2,083 sites. That represented a 16% increase from FY25.

The company also generated an additional $7 million of earnings through improved debt resolution in the United Kingdom. Management expects this contribution to moderate to approximately $5 million in FY27, suggesting investors should not simply extrapolate the entire FY26 benefit.

Smart Parking’s site economics remain an important part of the growth story. Management estimates that a new ANPR site requires between $17,000 and $19,000 of upfront investment and can generate between $45,000 and $50,000 in annual revenue. The expected payback period is between six and 12 months.

That creates the potential for a self-funded growth cycle, with cash from established sites helping finance the next round of expansion.

A growing international footprint

Smart Parking is targeting between 450 and 600 net new ANPR sites in FY27. Its longer-term goal is to reach 3,000 sites by December 2028, almost 50% above the FY26 closing total.

The United States could become a major part of that runway.

Peak Parking has performed ahead of the original acquisition case, according to management. Smart Parking then acquired American Parking for US$12 million in July, adding 54 locations across Oklahoma, Texas, and Arkansas.

What are the risks?

Regulation remains one of the clearest risks. Smart Parking relies partly on access to vehicle registration data, while parking breach notices contribute significantly to revenue. Changes to parking or debt collection rules could affect the economics of its largest market, the United Kingdom.

Execution is another consideration. The company must integrate its US acquisitions, roll out its technology, and maintain capital discipline while expanding across several countries.

Foolish takeaway

Smart Parking is developing into something relatively uncommon among ASX small caps: a business pursuing rapid international growth while already producing meaningful earnings and cash flow.

The valuation, regulatory exposure, and demands of overseas expansion should not be overlooked. However, record results, attractive site economics, and a growing international network suggest this unglamorous parking operator has become a more substantial business than its share price performance might imply.

The post This profitable ASX small-cap just posted record results appeared first on The Motley Fool Australia.

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• Smart Parking reports record FY26 earnings and global growth

Motley Fool contributor Leigh Gant 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 Smart Parking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Your superannuation is a great way to collect a pot of money to fund your retirement. 

But did you know it can also become a regular source of passive income once you stop working? It can help cover day-to-day expenses and enable you to enjoy the lifestyle you’ve worked hard for.

The idea is pretty simple. Instead of sitting as idle cash, your money stays invested and generates dividends and capital growth. You can then use your super to pay a regular income through retirement.

The ultimate goal for many Australians is a $1 million superannuation balance. But exactly how much passive income could a portfolio this size actually generate each month?

Let’s investigate.

What passive income can I earn from my $1 million superannuation balance?

To calculate your potential passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

But the problem is, the answer varies widely depending on what dividend yield you pick.

For example, $1 million x 3% = $30,000 per year in dividend payments.

But if your portfolio has a slightly higher dividend yield of around 4%, your passive income will be higher. That’s because $1 million x 4% = $40,000 per year in dividend payments. 

If your superannuation portfolio yields closer to 5%, you could earn $50,000 every year in dividend payments off the same superannuation balance ($1 million x 5% = $50,000).

At a 6% yield, you could earn an annual passive income of around $60,000, and at 7%, it could be even higher, at around $70,000.

And so on… 

As your dividend yield increases, the passive income you can earn from your $1 million superannuation balance also increases.

Note that these figures are based on cash dividends before tax or franking credits. 

Also note that most ASX shares pay dividends to shareholders every six months, which means you’ll receive the passive income in chunks rather than on a monthly or annual basis.

Can’t I just invest in the highest-yielding ASX shares to earn the highest passive income?

Technically yes, but it doesn’t make good investment sense.

When it comes to investing your superannuation into ASX dividend shares, generally the higher the yield, the higher the risk associated with that stock.

Diversification is key

Rather than trying to get rich quick, it’s better to focus on a diverse range of high-quality businesses with strong balance sheets and stable earnings. Ideally, you want to focus on stocks that are most likely to stand the test of time.

Also remember, if you want a 5% yielding portfolio, for example, that doesn’t mean that every investment has to yield 5%. It can be a variation which equates to a combined overall 5% yield.

And remember, you don’t need to invest the whole sum in one go. Start with regular monthly investments and let compounding do some of the hard work for you.

Ok, give me some options of ASX shares I can invest my superannuation in

There are a huge range of ASX dividend shares available at a wide range of yields, but here are some of my top picks right now.

Defensive shares like Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), or APA Group (ASX: APA) are a solid choice for income-seeking investors. These all yield between 4% and 5.5%, at the time of writing.

Non-discretionary ASX consumer staples stocks are also naturally defensive. Supermarket giants like Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) can generate stable cash flow across all phases of the economic cycle. This translates to consistent dividends for shareholders. These shares pay a slightly lower dividend, between 2.5% and 3%, at the time of writing.

Elsewhere, ASX bank stocks remain a popular choice. The four major banks dominate the S&P/ASX 200 Index (ASX: XJO) by market capitalisation, and their defensive qualities mean their shares often bounce back during economic recovery. Commonwealth Bank of Australia (ASX: CBA) yields around 3%, while National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ) all yield a little higher, at around 4.5%.

The post How much passive income can I earn off a $1 million superannuation balance? appeared first on The Motley Fool Australia.

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• How much is needed in superannuation for $2,500 in weekly passive income?
• Do leading brokers rate Woolworths shares as a buy following its results?
• Buy, hold, sell: Coles, Paladin Energy, and Woodside shares

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 positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.