Investors that are looking for growth options might want to check out the ASX 200 growth shares listed below.

These shares have been named as buys and tipped to climb meaningfully from current levels. Here's what you need to know:

Lovisa Holdings Limited (ASX: LOV)

The first ASX 200 growth share that has been named as a buy is this fast fashion jewellery retailer. Last month, Lovisa released its half-year results and reported a 44.8% increase in revenue to $315.5 million and a 31.9% jump in net profit after tax to $253.2 million. Analysts at Morgans were impressed and have described the company as a "phenomenon" due to its incredible expansion plans.

Morgans currently has an add rating and $29.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another ASX 200 growth share that has been named as a buy is ResMed. It is a medical device company with a leadership position in the sleep disorder treatment market. Thanks to its huge market opportunity and world class product portfolio, it has been tipped to continue growing at a solid rate in the future by analysts at Goldman Sachs.

The broker recently reaffirmed its buy rating and $38.00 price target on its shares.

Pilbara Minerals Ltd (ASX: PLS)

A final ASX 200 growth share to consider buying is Pilbara Minerals. The team at Morgans believe investors should be taking advantage of recent share price weakness to snap up the high quality lithium miner. Particularly given its belief that "demand in the Chinese market could increase from March onwards." It expects this to support lithium prices, which have been tumbling in recent months.

Morgans currently has an add rating and $4.70 price target on the miner's shares.

The post Here's why experts rate these ASX 200 growth shares as buys appeared first on The Motley Fool Australia.

If you're interested in buying growth stocks, then Lovisa Holdings Ltd (ASX: LOV) shares could be worth considering.

That's the view of analysts at Morgans, which are extremely bullish on the fast-fashion retailer.

Why is it bullish on Lovisa shares?

According to a note, Morgans has been very impressed with the company's global expansion and particularly the rate in which it is opening new stores.

Another positive is that the company's younger target demographic is likely to be less exposed to rising interest rates. This means the company should be better positioned during the cost of living crisis. Morgans commented:

Lovisa is, in our opinion, a phenomenon. The business rolled out more stores in 1H23 than it did in the whole of the previous year and is laying down markers in multiple new global markets, creating a foundation for long-term network expansion. Lovisa's customer is likely to be more resilient than those pre-occupied with inflation in household expenses.

The good news is that the broker believes Lovisa's store expansion is only getting started thanks partly to its "ambitious and well-incentivised new leadership."

In fact, Morgans suspects that "now is the time LOV steps up to become a global force." It adds:

LOV has accelerated its organic rollout in the US and entered into a number of new markets, including Hong Kong, Mexico, Italy, Columbia and Peru. We believe it is poised to enter both Vietnam and Taiwan in coming months. Investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the returns could be stellar. We think LOV's products fill an underserved niche, offering fast fashion jewellery at prices that are attainable to a resilient target demographic.

Is now a good time to buy?

Morgans currently has an add rating and $29.00 price target on the company's shares.

Based on the latest Lovisa share price of $24.49, this implies potential upside of over 18% for investors over the next 12 months.

The post Lovisa is a 'phenomenon': broker urges investors to buy shares appeared first on The Motley Fool Australia.

A number of ASX 200 shares are in the red on Tuesday because they are trading ex-dividend.

When a share trades ex-dividend, it means that the rights to an upcoming dividend are now settled.

In light of this, if you were to buy one of these ASX 200 shares today, the rights to the dividend would stay with the seller and not transfer to you.

As a result, a share price will tend to decline in line with the dividend payment to reflect this. After all, why should a buyer pay for something that they aren't going to receive?

Which ASX 200 shares are going ex-dividend?

The following five ASX 200 shares have gone ex-dividend on Tuesday:

Lovisa Holdings Ltd (ASX: LOV)

This fast-fashion jewellery retailer's shares have gone ex-dividend for its fully franked 38 cents per share interim dividend. This will be paid to eligible shareholders next month on 20 April.

Northern Star Resources Ltd (ASX: NST)

Last month, this gold mining giant released its half-year results and declared an 11 cents per share fully franked interim dividend. Eligible shareholders can now look forward to receiving this dividend in their bank accounts towards the end of the month on 29 March.

Qube Holdings Ltd (ASX: QUB)

This logistics solutions company will be paying its shareholders a fully franked interim 3.8 cents per share interim dividend next month on 13 April.

Sonic Healthcare Limited (ASX: SHL)

When this healthcare company released its half-year results last month, it declared a fully franked interim dividend of 42 cents per share. This will be paid to eligible shareholders in a couple of weeks on 22 March.

Viva Energy Group Ltd (ASX: VEA)

Finally, this fuel retailer's shares have gone ex-dividend today for its 13.3 cents per share fully franked final dividend. This is scheduled to be paid to eligible shareholders later this month on 24 March.

The post 5 ASX 200 shares trading ex-dividend today appeared first on The Motley Fool Australia.

ASX dividend shares could be the ticket for workers who want to replace their whole salary with passive income.

Businesses have great potential to be able to pay dividends and re-invest in their businesses, enabling income for investors as well as compounding profit.

Investors have more options for where to put their money these days. Some term deposits and savings accounts can offer investors a yield that starts with a 4%.

But, I don't think those investments that offer a fixed return are the way to build wealth because they don't produce any growth themselves.

That's why I think ASX dividend shares can be the tool that we use to build wealth.

How I'd plan to replace a salary with passive income

Before we get to the investing side of things, I think investors need to figure out how much they're able to save and what level of passive income they're aiming for.

Costs are quite a lot higher for households these days, with more expensive food and energy. It's okay if investors aren't able to save much in the current environment. Keeping a roof over one's head and putting food on the table is the most important thing.

I'd also suggest that each adult needs to ensure they're not trying to save too much and hurting today's enjoyment. What I mean by that is that people get older, circumstances change and so on – sometimes it's better to pay for an experience this year than wait for a distant future.

Having said that, I'd figure out how much we can save and invest. It could be $500 a month, $1,000 a month, $2,000 a month or even more.

Next, I'd want to work out what the dividend passive income goal is. Every household's expenditure is different. The desired expenditure could also be different.

The Association of Superannuation Funds of Australia's Retirement Standard suggests that a couple that owns their own home will need an income of about $67,000, while a single person will need an annual passive income of more than $47,000.

Start saving and investing

I'd then get to work and start investing that $1,000 a month or $2,000 a month, perhaps more, into ASX shares. So, that would turn into $12,000 a year or $24,000 a year.

Of course, making an annual passive dividend income of $67,000 or more will take time to build.

Investing $1,000 a month, and if the portfolio grows at 10% a year, could achieve $1.18 million after 25 years.

Investing $2,000 a month, and if the portfolio grew by 10% per year, could rise to $1.37 million after 20 years.

Both of those totals may seem like a lot, but I think they're very achievable thanks to compounding. In the first example, investing $1,000 a month, it only takes the investor to add $300,000 of their own money – while $880,000 comes from investment returns in that example.

Which ASX shares to buy?

There are some ASX shares that I think can provide a solid amount of growth for investors and help compound a portfolio's value, such as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), VanEck Morningstar Wide Moat ETF (ASX: MOAT), Wesfarmers Ltd (ASX: WES), VanEck MSCI International Quality ETF (ASX: QUAL), Lovisa Holdings Ltd (ASX: LOV) and Betashares Nasdaq 100 ETF (ASX: NDQ).

When investors get closer to the age or figures they're aiming for, I'd also want to consider some ASX dividend shares that pay good yields like Soul Pattinson, Wesfarmers, Rural Funds Group (ASX: RFF), Premier Investments Limited (ASX: PMV), Charter Hall Long WALE REIT (ASX: CLW) and Metcash Limited (ASX: MTS).

A $1.2 million portfolio with a 5% dividend yield would produce an annual passive income of $60,000. That sounds great to me.

The post How I'd aim to replace an entire salary with passive income from ASX dividend shares appeared first on The Motley Fool Australia.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a solid gain. The benchmark index rose 0.6% to 7,328.6 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Tuesday despite a relatively decent start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 18 points or 0.25% lower. In late trade in the United States, the Dow Jones is up 0.1%, the S&P 500 is up 0.2%, and the NASDAQ is up 0.15%.

Oil prices rise

Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a decent day after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.6% to US$80.16 a barrel and the Brent crude oil price is up 0.1% to US$85.85 a barrel. Oil prices rose despite concerns over China's economic growth targets.

RBA meeting

It is the first Tuesday of the month, which means the Reserve Bank of Australia will be meeting to discuss the cash rate. According to cash rate futures, the market has priced in a 75% probability of the central bank increasing the cash rate by 25 basis points to 3.6%.

Gold price edges lower

It could be a subdued day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (down: RRL) after the gold price edged lower overnight. According to CNBC, the spot gold price is up 0.15% to US$1,851.9 an ounce. Traders were selling gold ahead of the US Fed chief testimony.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend on Tuesday for their latest payouts and could trade lower. This includes the likes of fast-fashion jewellery retailer Lovisa Holdings Ltd (ASX: LOV), gold miner Northern Star Resources Ltd (ASX: NST), healthcare company Sonic Healthcare Limited (ASX: SHL), and fuel retailer Viva Energy Group Ltd (ASX: VEA).

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

ASX shares have great potential to be able to deliver capital growth for investors. But I like that ASX dividend shares can deliver a pleasing stream of passive income through dividends.

Dividends, or distributions, are a simple way for a business to share some of its profit with investors.

There's a cliché that says the first million dollars is the toughest to achieve.

I think we can say the same about dividend income. Making the first $1,000 of dividend income could be the hardest if starting from scratch.

However, I wouldn't suggest thinking $1,000 is an end goal. Rather, I'd think of it as just a milestone.

Most investors have many more years to live, so I think it makes sense to target businesses that can provide a combination of a decent starting dividend yield and growth.

Earnings growth can enable investors to benefit from dividend growth and share price growth over time. In my opinion, it's very helpful for the investment to help grow the dividend income.

With that in mind, I'd want to target these two names.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa describes itself as a "fashionable on-trend jewellery and accessories specialist". There are a number of reasons why I think this business has a compelling future.

For starters, I don't think young shoppers are going to be as affected by a possible economic downturn as other age groups.

Lovisa is rapidly growing its geographic presence, with very profitable stores. In the FY23 first half, it added 86 net new stores to its portfolio, ending the period with 715 stores. By the date of the result release, it had 746 stores.

The ASX dividend share has recently entered a number of new markets including Italy, Poland, Hungary, Romania, Canada, Hong Kong, and Mexico. Each of these markets can turn into important earnings generators. It's also growing rapidly in the US, a huge potential market for the business.

HY23's net profit after tax (NPAT) jumped 31.9% to $47.7 million. Using its last two dividends, it has a grossed-up dividend yield of 4.5%. By FY25, it could pay an annual dividend per share of 95 cents according to Commsec, which (if fully franked) would be a grossed-up dividend yield of 5.7%.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store also focuses on younger shoppers so I think it could be another business that's more resilient than expected.

The company describes itself as owning a portfolio of "premium youth fashion brands and omnichannel retail and wholesale businesses". Its main businesses are Universal Store and the THRILLS brand, and it's also trialling the Perfect Stranger brand as a standalone retail concept. It has 93 stores, as well as e-commerce options for customers.

The ASX dividend share's half-year result included a number of positives, including a 31.7% increase in statutory net profit after tax, while the interim dividend was increased by 27%.

During the period, it added another six new stores, combined with 10 acquired THRILLs stores. The Perfect Stranger trial "continues to perform", with national expansion plans now "in play".

It's planning to open another four to six additional Universal Stores in the second half of FY23, along with three or four Perfect Stranger stores and one new THRILLs store.

The last two dividends amount to a grossed-up dividend yield of 6.3%.

By FY25, according to Commsec, it could pay a grossed-up dividend yield of 9%.

The post Making the first $1,000 in passive income: These are the ASX shares I would buy first appeared first on The Motley Fool Australia.

Here's why these could be ASX 200 growth shares to buy in March:

Lovisa Holdings Limited (ASX: LOV)

The first ASX 200 share to look at is fast-fashion jewellery retailer Lovisa. It could be a top long term option due to the popularity of its affordable offering and its significant global expansion plans.

The latter is a key reason why Morgans is so bullish on the company. It recently wrote:

LOV commented today that it sees 'lots of white space' around the world for future network expansion. This, in our opinion, is the reason to own LOV. The business has a product that can be deployed around the world; an efficient fit-out process; a strong position in a niche segment; and the ambition to turn Lovisa into a truly global brand.

Morgans has an add rating and $29.00 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

Another ASX 200 growth share that could be a buy is this logistics solutions company.

WiseTech is the company behind the popular CargoWise One solution, which allows users to execute complex logistics transactions and manage freight operations from a single, easy to use platform.

Demand has been strong for its platform over the last few years and underpinned strong sales and profit growth.

Pleasingly, this strong form has continued in FY 2023, with the company reporting stellar growth during the first half. And with management expecting more of the same in the second half, WiseTech is guiding to revenue growth of 26% to 30% and EBITDA growth of 19% to 29% for the full year.

Morgan Stanley is positive on the company's outlook. It has an overweight rating and $70.00 price target on its shares.

The post 2 explosive ASX growth shares to buy this month: analysts appeared first on The Motley Fool Australia.

The Australian share market was weak in February, taking back a lot of the gains investors enjoyed in January.

However, the QVG Capital Long Short Fund managed to remain flat.

In fact, the reporting season served as confirmation of its investment beliefs for many of its ASX shares.

Here are three with the best prospects:

'Market is running out of reasons not to back these guys'

Johns Lyng Group Ltd (ASX: JLG) is the fund's top holding currently, for good reason.

"Johns Lyng Group reported 88% earnings per share growth and upgraded their full year guidance," QVG analysts said in a memo to clients.

The share price had been down year-to-date before reporting season and 21% in the red over the past 12 months.

"The stock had been weak leading into the result due to insider selling and a lack of disclosure of performance of their large acquisition, RE," read the memo.

"This result puts these fears to rest."

Now with those results and outlook delivered, it's only upwards and onwards for the insurance repair business.

"The market is running out of reasons not to back these guys!" read the QVG memo.

"The combination of more organic growth and intelligent acquisitions means future earnings per share growth will eventually force the stock higher."

'A long runway of growth ahead'

For the QVG fund managers, its investment in Hub24 Ltd (ASX: HUB) has been the perfect demonstration of the power of long-term investing.

"Our first investment in this stock was in 2015 — well before the inception of QVG Capital — at $3.50 with the view that the stock's earnings would one day justify the expensive valuation," read the memo.

"The stock now trades at $29 and still has a long runway of growth ahead of it."

Reporting season continued the investment platform provider's record of growth.

"The highlight of Hub24's results was earnings per share growth of 59% despite rising costs," the QVG memo stated.

"'Patience' and 'the power of compounding free cash flow' are the lessons here."

'A bull market in sneakers, jeans and accessories'

During a time when most non-mining ASX shares have suffered, Lovisa Holdings Ltd (ASX: LOV) has been a true darling of the market.

Since June, the retail stock has rocketed an incredible 86%.

Reporting season, for the QVG team, indicated Lovisa's momentum would continue.

"Lovisa delivered a very strong result, beating consensus at revenue and, if you back out the generous incentive package for the CEO, it was a very large beat to operating earnings too."

The analysts admitted there are worries about consumer spending slowing down for discretionary goods, with nine consecutive months of interest rate rises starting to bite hard.

But perhaps the clientele for budget jewellery doesn't overlap much with those servicing home loans.

"Housing-related retail is slowing noticeably but those without mortgages are having a great time," read the memo.

"There still appears to be a bull market in sneakers, jeans and accessories. As shareholders of Lovisa we're happy The Kids Are Alright."

The post We still hold this ASX 8-bagger because there's more to come: QVG appeared first on The Motley Fool Australia.

As the Autumn leaves turn brown and begin to fall, investors will be hoping their ASX shares remain firmly in the green.

This follows an event-filled earnings season, after which many shareholders will be taking stock of their holdings and making some changes based on those ASX companies that performed, and those that failed to deliver.

If you're looking to usher out the old and welcome some new investments to your portfolio this month, here are a few ideas to get you started.

Because, as always at the start of a new month, we asked our Foolish writers which ASX shares they think offer top buying in March.

Here is what the team came up with:

7 best ASX shares for March 2023 (smallest to largest)

• Aeris Resources Ltd (ASX: AIS), $476.75 million
• Propel Funeral Partners Ltd (ASX: PFP), $519.02 million
• Accent Group Ltd (ASX: AX1), $1.27 billion
• Lovisa Holdings Ltd (ASX: LOV), $2.61 billion
• Block Inc (ASX: SQ2), $3.56 billion
• Pilbara Minerals Ltd (ASX: PLS), $12.59 billion
• Telstra Group Ltd (ASX: TLS), $48.07 billion

(Market capitalisation as of 28 February 2023)

Why our Foolish writers love these ASX stocks

Aeris Resources Ltd

What it does: Aeris calls itself a mid-tier base and precious metals producer, with copper forming the biggest part of its portfolio. The All Ordinaries Index (ASX: XAO) miner also produces gold and zinc.

By Tristan Harrison: I believe the acquisition of Round Oak has boosted this miner's prospects. It has recently reported a number of exploration successes that could help it become bigger in the coming years.

Aeris is also debt free, meaning its balance sheet is in good shape to pursue opportunities.

Furthermore, I think copper has a very promising future as the world looks to decarbonise and electrify economies. Improving the electric grid and manufacturing electric vehicles will need more copper.

Commsec numbers suggest Aeris could make 15 cents of earnings per share (EPS) in FY24, putting the Aeris Resources share price at just five times FY24's estimated earnings.

Motley Fool contributor Tristan Harrison does not own shares in Aeris Resources Ltd.

Propel Funeral Partners Ltd

What it does: Propel Funeral Partners is the second-largest private provider of death care services across Australia and New Zealand. The company holds a vast presence across its 152 operating locations, including 35 cremation facilities and nine cemeteries.

By Mitchell Lawler: There is a combination of characteristics I find highly desirable in the ASX shares I look to invest in. These being businesses that are hard to disrupt, operate in fragmented industries, have a proven track record for growth, and are run by management with skin in the game. Propel is a company that ticks all of these boxes, from where I'm standing.

There are two big players in this industry – InvoCare Limited (ASX: IVC) and Propel. Outside of these two, there is around 70% market share – made up of primarily small, family-run operations – which is arguably just waiting to be consolidated. The Propel team has proven its ability in this regard, having grown its operations from one location in 2013 to now more than 150.

In my opinion, a price-to-earnings (P/E) ratio of 27 times is far too cheap for a company that just posted a 35% increase in operating net profits in the latest half. While I suspect this could slow as funeral volumes return to historical averages, I believe the long-term trend is favourable.

Motley Fool contributor Mitchell Lawler does not own shares in Propel Funeral Partners Ltd.

Accent Group Ltd

What it does: Accent Group is a footwear and clothing retailer and distributor. It's behind such stores as Platypus, The Athlete's Foot, Skechers, Dr Martens, and Vans.

By Brooke Cooper: Accent dropped its first-half earnings last week, delivering impressive growth and a positive outlook.

It posted a 39% jump in sales and a 290% increase in net profit after tax (NPAT). The retailer also declared a 12 cent per share fully franked interim dividend, while its debt levels fell to $63.6 million.

To top it off, Accent hasn't seen any significant change in consumer spending despite economic uncertainty, perhaps as its younger target market likely isn't highly impacted by rising interest rates or cost of living pressures.

Goldman Sachs has a buy rating and a $2.90 price target on Accent shares. This represents around 30% upside based on the current share price.

Motley Fool contributor Brooke Cooper does not own shares of Accent Group Ltd.

Lovisa Holdings Ltd

What it does: Lovisa is a fast-fashion jewellery retailer with a rapidly-growing global footprint.

By James Mickleboro: I think Lovisa would be a great long-term option for investors due to its strong brand, relatively low price point, and bold global expansion plans.

With respect to the latter, during the first half of FY 2023, Lovisa opened 86 net new stores, bringing its total to 715. While this is a large number, I believe it's well short of what could be achieved in the future.

For example, in the United States, the company now has 155 stores. This is less than the 163 stores it operates in Australia, despite the US population being around 13 times greater than ours.

And with its talented management team highly experienced in global rollouts for retail brands, including Guess and Zara, I believe the company could be destined to grow its store network into the thousands by the end of 2020s.

It's no wonder that Morgans has previously suggested that Lovisa could "prove to be one of the biggest success stories in Australian retail".

Motley Fool contributor James Mickleboro does not own shares in Lovisa Holdings Ltd.

Block Inc

What it does: Block is the US tech giant formerly known as Square. It runs several highly successful apps and provides payment services, including Afterpay.

By Sebastian Bowen: Block is an S&P/ASX 200 Index (ASX: XJO) share that has had a very turbulent year or two. But the company's latest quarterly report showed some very pleasing numbers.

The fintech company reported a 14% jump in revenues, as well as a 40% spike in gross profits and a 53% increase in earnings.

Block's Cash App continues to go from strength to strength, with the app's profits rising 64% year on year and Afterpay netting Block $200 million in profits over the quarter.

Block is an exciting fintech company, and one with exposure to multiple markets across different countries. As such, I think it is well worth looking at this March.

Motley Fool contributor Sebastian Bowen does not own shares in Block Inc.

Pilbara Minerals Ltd

What it does: Pilbara Minerals is an ASX 200-listed lithium and tantalum producer. Its 100% owned Pilgangoora Lithium-Tantalum Project, located in Western Australia, is said to be the world's largest, independent hard-rock lithium operation.

By Bernd Struben: I believe Pilbara Minerals is doing a great job executing its development and growth strategies, as demonstrated by its half-year results.

Compared to the prior corresponding period, the lithium miner saw sales revenue surge 305% to $2.2 billion and statutory net profit after tax (NPAT) leapt 989% to $1.2 billion.

The company also declared its first-ever dividend of 11 cents per share, fully franked. That represents a 2.6% yield at the current price. Pilbara trades ex-dividend on Thursday, 2 March.

The Pilbara Minerals share price is up by around 60% in 12 months. But I believe the miner has far more to offer long term, as the growth outlook for EVs and grid storage batteries – most of which require lithium – remains very strong.

Motley Fool contributor Bernd Struben does not own shares in Pilbara Minerals Ltd.

Telstra Group Ltd

What it does: Telstra is Australia's largest provider of telecommunications and information products and services.

By Bronwyn Allen: Australia's biggest telco and the largest ASX communications stock by market cap is currently a favourite among several top brokers.

Macquarie has placed Telstra at the top of its model income portfolio with an 8.8% weighting. It likes Telstra's higher earnings certainty, strong cash flows, and fully-franked dividends.

Macquarie has an outperform rating and a 12-month price target of $4.64. After Telstra released its half-year earnings earlier this month, Goldman Sachs reiterated its buy rating with a price target of $4.60.

Morgans says the telco industry "has the strongest tailwinds in a decade" and has a $4.70 price target on Telstra shares. At market close on Tuesday, the Telstra share price was sitting at $4.16.

Motley Fool contributor Bronwyn Allen does not own shares in Telstra Group Ltd.

The post Top ASX shares to buy in March 2023 appeared first on The Motley Fool Australia.

I think it's understandable that some asset prices have been hit. Higher interest rates lead to stronger returns from 'safe' assets like term deposits, making riskier assets like shares worth a bit less than they used to be.

But, those businesses are still the same companies they were a year ago. I think it just means we can buy them at better value now. With that in mind, these are the three ASX 200 growth shares I'd pounce on right now.

Xero Limited (ASX: XRO)

Xero is one of the world leaders when it comes to cloud accounting software, in my opinion. It has a very strong position in Australia and New Zealand, it's growing strongly in the UK, and it has ambitions in a number of other countries including the US, Canada, South Africa, and Singapore.

I think that some investors are underestimating how profitable Xero is because it's spending most of its revenue growth on further growth activities like marketing and product development.

When I look at some of the numbers, I really like what I see. In the FY23 first half, the gross profit margin was 87%, operating revenue increased by 30% to $658.5 million, and the average revenue per user (ARPU) increased by 13% to $35.30.

With the Xero share price down 45% since the end of 2021, I think it's now at a great price to invest in for the long term.

Johns Lyng Group Ltd (ASX: JLG)

Johns Lyng describes itself as an integrated building services business. Its core business is rebuilding and restoring properties and contents after damage through insured events such as impact, weather, and fire.

Customers include major insurance companies, businesses, local and state governments, owners' corporations, and retail customers.

I think this business is exposed to strong tailwinds, particularly climate change. The more unfortunate weather events there are, the more activity there is for Johns Lyng to help with.

In the company's FY23 half-year result, it upgraded its guidance for the rest of the financial year.

It noted that its earnings were being upgraded because of "strong earnings growth" for both its business-as-usual (BaU) work as well as catastrophe work. HY23 earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 63%. The dividend was increased by 66.7%.

The ASX 200 growth share said that the trend of workflows from catastrophe events is "larger and longer lived". Work from previous events is carrying over into the current financial year. As such, it's seeing a "more sustainable earnings profile" for that division, though this is tied to unpredictable events.

The Johns Lyng share price is down more than 30% since April 2022.

Lovisa Holdings Ltd (ASX: LOV)

I think Lovisa is one of the ASX-listed businesses that has a strong chance of being a global growth contender.

The ASX 200 growth share sells affordable jewellery to younger shoppers. But what I like about the business is that it's expanding its retail store portfolio across the world.

In the second half of FY22, it had 586 stores. A year later this figure had grown to 715. It's growing its presence in places such as Australia, New Zealand, Malaysia, Hong Kong, the UK, South Africa, France, Germany, Italy, Poland, the US, and Mexico. The business is also looking to grow its digital sales and capabilities as well.

It's looking to continue its global rollout in both existing and new markets.

The business reported HY23 net profit after tax (NPAT) growth of 31.9%, with a slight increase in the dividend. Not bad for a business spending a lot of cash on growth.

Commsec numbers suggest the Lovisa share price is valued at just 20 times FY25's estimated earnings. I think it could grow strongly over the rest of the decade, combined with a decent dividend as well.

The post These are my top ASX 200 growth shares to buy today appeared first on The Motley Fool Australia.

Reporting season continues amid a background of geopolitical tensions and economic turbulence.

Morgans analyst Andrew Tang has been monitoring all the financial reports and regularly declaring his favourites to buy.

Here are the latest seven ASX shares he likes:

Explosive growth while the rest of the world struggles

Lovisa Holdings Ltd (ASX: LOV) has been a darling on the ASX, rising 51% over the past 12 months when most other non-mining stocks have been in the red.

But the results just announced still exceeded Morgans' expectations.

"Lovisa reported net profit after tax [NPAT] of $50.5 million (pre-AASB 16) — 1% higher than our forecast," Tang wrote on the Morgans blog.

"Sales growth was 45%, driven by store rollout and +12.5% like-for-like sales growth."

The current growth is at breakneck pace.

"Lovisa opened a net of 86 new stores in 1H23, more than in all of FY22."

Tang's team is recommending a buy for Lovisa shares and has upgraded future earnings expectations for the company.

'Momentum in the business is strong'

Meanwhile, Superloop Ltd (ASX: SLC) exceeded Morgans' expectations for earnings but slightly missed for net profit after tax.

But the stock is a buy, with the broadband provider heading in the right direction.

"Momentum in the business is strong with Superloop delivering 28% YoY organic revenue growth and EBITDA lifting more due to positive leverage," said Tang.

"Underlying EBITDA was up 89% YoY and operating cash flow conversion was impressive at 103%."

Healthcare goods distributor EBOS Group Ltd (ASX: EBO) enjoyed "a record 1H23 result", showing off "double-digit gross order receipts and EBITDA growth through acquisitions and organically".

According to Tang, the company has successfully navigated through "an operationally challenging environment with supply chain issues and cost pressures".

"EBOS continues to be a leader and hold strong market positions in both healthcare and animal care operating segments," he said.

"We have upgraded our EPS forecast by ~1% in FY24/25."

Energy sector still in demand in 2023

While Karoon Energy Ltd (ASX: KAR)'s wasn't mind-blowing by any means, the result left the "valuation in its dust", according to Tang.

"Even the lower-than-expected 1H23 result with EBITDAX of US$176 million puts Karoon on an EBITDAX multiple of just ~2.0x, a sector low," he said.

"Karoon maintaining FY23 unit cost and production guidance highlights the bulk of earnings are skewed to 2H23."

Also in the energy sector, Tang noted Santos Ltd (ASX: STO) posted "record profits and cash flow, upsized shareholder returns and developments across several key assets". 

"On balance, a steady 2H22 result, falling just short of consensus expectations. Strong final dividend of 15.1 US cents, vs Morgans' [forecast] 14.3 US cents."

Both these energy players are a buy right now for the Morgans team.

'Remarkably strong' businesses

Insurance claims repairer Johns Lyng Group Ltd (ASX: JLG) posted a "remarkably strong" half-yearly result due to "unprecedented" amount of work from catastrophic (CAT) weather events.

"EBITDA of $59.4 million — 15% above our forecast of $51.7 million — was up 63% vs pcp," said Tang.

"Underlying NPAT of $25.9 million was 10% above our forecast and up 82% vs pcp. FY23 guidance was upgraded by ~5.5% on a headline basis."

The stock is a buy, with more catalysts to come for the business.

"We maintain our positive view on JLG, and continue to see it well placed to benefit from ongoing elevated claims activity, further market share gains across its four key growth pillars in Australia, US and New Zealand, and ongoing market consolidation via M&A."

Hotel Property Investments Ltd (ASX: HPI) is not a name often heard of, but Morgans likes the investor of pubs.

Tang noted that its dividend guidance was maintained after the latest result, which indicates "an implied distribution yield of +5%". 

"The portfolio is valued at $1.25 billion, weighted average lease expiry +10 years, and hotel occupancy 100%."

The net tangible asset was recalculated to $4.06, which is far above the current stock price.

"HPI's focus remains on portfolio quality via the refurbishment program (well progressed), as well as potential asset divestments."

The post 7 more ideas for buying ASX shares this reporting season: expert appeared first on The Motley Fool Australia.

Four ASX shares that aren't letting that hold them back today are listed below. Here's why they are charging higher:

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is up 4% to $24.85. This morning, in response to its half-year results from yesterday, analysts at Morgans retained their add rating with an improved price target of $29.00. the broker notes that "LOV reported NPAT of $50.5m (pre-AASB 16), 1% higher than our forecast."

Medibank Private Ltd (ASX: MPL)

The Medibank share price is up 6% to $3.27. This follows the release of the health insurer's half-year results. The company reported a 1.3% increase in revenue to $3.63 billion and a 6.7% lift in underlying net profit after tax to $227 million. This allowed Medibank to increase its fully franked interim dividend by 3.2% to 6.3 cents per share.

Qube Holdings Ltd (ASX: QUB)

The Qube share price is up 9% to $3.25. Investors have been buying this logistics solutions company's shares following the release of its half-year results. Qube reported a 23% increase in underlying revenue to $1.5 billion and a 41% jump in net profit after tax to $125 million. This was driven by continuing high volumes across most of Qube's core markets, as well as the full period contribution from prior acquisitions and growth capex.

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup share price is up 8% to $6.13. This morning, this salary packaging and fleet management company released its full-year results and reported a 1% increase in revenue to $225 million but a 12% decline in net profits after tax before amortisation to $61 million. The latter was at the high end of its guidance range.

The post Why Lovisa, Medibank, Qube, and Smartgroup shares are charging higher appeared first on The Motley Fool Australia.

Two ASX growth shares that brokers have slapped buy ratings on this week following the release of their respective results are listed below. Here's what they are saying:

Lovisa Holdings Limited (ASX: LOV)

The first ASX growth share that has been named as a post-results buy is this fast fashion jewellery retailer.

Earlier this week, Lovisa released its half-year results and reported a 44.8% increase in revenue to $315.5 million and a 31.9% jump in net profit after tax to $253.2 million.

This went down well with analysts at Morgans, which responded by retaining its add rating with an improved price target of $29.00. The broker commented:

LOV continues to impress us with the rate at which it opens new stores and expands into new markets. As we have said before, LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand. Investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar. We retain an ADD rating. Our target price increases from $28.50 to $29.00.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share that delivered strong growth during the first half was enterprise software provider Readytech.

It reported a 34.1% increase in revenue to $47.9 million and underlying EBITDA of $15.6 million. Management also confirmed that it remains on target to achieve its FY 2023 guidance and reaffirmed its FY 2026 goal of over $160 million of organic revenue.

While the result was a touch short of expectations, Goldman Sachs responded positively and retained its buy rating with a trimmed price target of $4.40. It said:

RDY's 1H23 result missed on both revenue and EBITDA (-5%/-9%), although we remain positive on the company's ability to meet its reiterated full-year guidance for mid-teens organic growth at low-to-mid 30's EBITDA margin. Our constructive view is based on encouraging metrics including (1) A$9mn ACV from 6 enterprise deals signed late in 1H23 and yet to contribute to group revenue; (2) average revenue per new customer of A$72k in the half, up from A$52k in FY22, demonstrating RDY's enterprise momentum; and (3) easing tech labour pressures, supporting margin expansion in 2H23.

The post Results in! Buy these ASX growth shares now: analysts appeared first on The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) shares are down a collective 0.3% today amid companies continuing to release their results during the first earnings season of 2023.

Here we take a peek at the results from an ASX retail share, an ASX financial share, and a real estate investment trust (REIT).

Lovisa Holdings Ltd (ASX: LOV)

Shares in this ASX 200 jewellery retailer are up 0.6% to $24.20 in early afternoon trading. Lovisa reported continuing strong sales and profit growth, with 86 new stores (net) opened during the period. The Lovisa store network now totals 715.

Here are the highlights of Lovisa's 1H FY23 report:

• Revenue up 44.8% to $315.5 million compared to the prior corresponding period (pcp) of 1H FY22
• Comparable store sales up 12.5% pcp
• Gross margin of 80.3% with gross profit up 48.4% pcp to $253.2 million
• Net profit after tax (NPAT) up 31.9% pcp to $47.7 million
• Operating cash flow of $115.8 million, up 49.4% pcp
• Net cash of $24 million

The ASX 200 retail share will pay a fully franked dividend of 38 cents per share on 20 April.

AUB Group Ltd (ASX: AUB)

Shares in ASX 200 insurance broker AUB Group are up 0.85% to $26.61 in early afternoon trading. The insurer said ongoing network optimisation, disciplined acquisitions, and enhanced broker propositions led to revenue growth and margin expansion in its Australian broking division. The 1H FY23 results include three months of contribution from Tysers, with its "revenue and profit … above expectations".

Here are the highlights of AUB's half-year report:

• Underlying NPAT of $46.7 million, up from $30.6 million pcp
• Underlying earnings per share (EPS) of 48.18 cents, up from 40.3 cents pcp
• NPAT of $400,000, down from $29.7 million, largely due to acquisition expenses
• FY23 underlying NPAT guidance upgraded to a range of $112.9 million to $121.4 million

The ASX 200 financial share will pay a fully franked dividend of 17 cents per share on 4 April.

Scentre Group (ASX: SCG)

This ASX 200 property share is up 2.6% to $2.90 in early afternoon trading. Scentre Group presented its full-year results for 2022 today.

Here are the highlights for the year ending 31 December:

• Revenue up 7.8% pcp to $2,458 million
• Profit after tax up 18.1% to $970.2 million
• Operating cash flow per share up 29.3% to 22.78 cents per share
• Operating profit per share attributable to Scentre Group members up 20.8% to 19.71 cents

The A-REIT announced last week that it will pay a partially franked distribution of 8.25 cents per share on 28 February.

The post 3 ASX 200 shares defying the market following earnings announcements appeared first on The Motley Fool Australia.

If you are, two ASX growth shares that could be worth considering are listed below. Here's why they are rated as buys:

Allkem Ltd (ASX: AKE)

The first ASX growth share to consider is Allkem. It is one of the world's largest lithium miners aiming to maintain a 10% share of global lithium supply over the long term.

Although Goldman Sachs is bearish on the lithium industry, it is positive on Allkem due to its production growth plans and its downstream optionality. The broker commented:

Of our covered Australian lithium companies, Allkem has the best LCE growth outlook with production growing >4x to FY27E with further downstream optionality on carbonate production

Goldman has a buy rating and $15.50 price target on Allkem's shares.

Lovisa Holdings Limited (ASX: LOV)

Another ASX growth share to consider is fast-fashion jewellery retailer, Lovisa.

Much like Allkem, it is the company's growth plans that has analysts and investors excited. Lovisa has been growing its store network at a rapid rate in recent years but isn't anywhere near the end of its journey. This is a journey being navigated by a highly talented and experienced management team that has been there before with other global retail brands.

In light of this, Lovisa has been tipped to become one of Australia's biggest retail success stories by analysts at Morgans. The broker said:

LOV may just prove to be one of the biggest success stories in Australian retail. With ambitious new leadership in place, we think now is the time LOV steps up to become a global force. Investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the returns could be stellar.

Morgans currently has an add rating and $28.50 price target on Lovisa's shares.

The post Two ASX shares with bucketloads of growth potential: experts appeared first on The Motley Fool Australia.

It's simple enough to envisage a $100,000 portfolio of income stocks that would pay thousands of dollars in dividends.

Names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Woodside Energy Group Ltd (ASX: WDS) may pay a decent yield today but they may not achieve a strong capital compound annual growth rate (CAGR) from here.

However, I think there are a couple of ways that ASX growth shares can achieve good cash flow for investors.

Strong dividend growth

There are plenty of businesses on the ASX that don't have dividend yields of more than 3%. That could be because of a combination of lower dividend payout ratios as well as higher price/earnings (P/E) ratios.

This could reflect the fact the business is retaining more of its profit to reinvest (therefore, it has a lower payout ratio) and the market is pricing the business for a higher earnings growth rate.

Some ASX growth shares have achieved enormous dividend growth because their payouts are growing along with their earnings growth.

For example, Lovisa Holdings Ltd (ASX: LOV) shares paid an annual dividend per share of 17.6 cents in FY17, which had grown to 74 cents per share in FY22.

Hub24 Ltd (ASX: HUB) has grown its annual dividend per share from 4.6 cents in FY19, up to 20 cents per share in FY22.

Johns Lyng Group Ltd (ASX: JLG) shares paid an annual dividend of 3 cents per share in FY19 and this has grown to 5.7 cents per share in FY22.

Netwealth Group Ltd (ASX: NWL) shares paid an annual dividend per share of 10.6 cents in FY18 and this had grown to 20 cents per share in FY22.

TechnologyOne Ltd (ASX: TNE) shares paid a dividend per share of 5.6 cents in FY13, which had grown to 17 cents in FY22.

What I'm trying to show here is that even if a dividend yield is 1.5% or 2% today, if the dividend quickly doubles or triples then the yield has become decent and that dividend could keep growing strongly.

Sell-down ASX growth shares

If an investor had a $100,000 portfolio of ASX growth shares, investors will hopefully see a certain level of capital growth over time.

Instead of receiving dividends, investors could decide to sell a portion of their investment and use the cash from that sale.

For example, if a $100,000 growth portfolio increased by 10% in a year then it would gain $10,000. An investor could sell $5,000, access that money, and be left with a portfolio worth $105,000.

If the growth portfolio worth $105,000 grew by 10% again, an investor would have $115,500. An investor could then sell $5,000 or $5,500 of those shares and be left with around $110,000.

One benefit of this strategy is that if an Australian taxpayer holds an investment for more than 12 months by the time of the sale, the gain can be eligible for a capital gains tax discount which can halve the taxable gain.

Of course, growth isn't guaranteed every year. In some years, the growth could be less than 10% but, of course, in other years, it could be stronger.

The post How to create a second income from ASX growth shares appeared first on The Motley Fool Australia.

ASX growth shares may not be known for their dividends, but one of the great things about strong growth in earnings per share (EPS) is that it also enables good growth of the dividend as well.

While in the first few years a dividend yield of an ASX growth share isn't likely to be as high as BHP Group Ltd (ASX: BHP), it can rise over time to be bigger.

Below are two that are paying solid yields and also could deliver excellent growth over time.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a leading ASX retail share that sells affordable jewellery which is focused on younger shoppers.

The business has a global network of stores in Australia, North America, Europe and so on. Asia could be the next growth engine for the company if it's able to achieve a good foothold in places like India or China.

Let's have a look at how much dividend income the ASX growth share is projected to pay in 2023.

Commsec numbers suggest that Lovisa could pay a grossed-up dividend yield of around 3%.

By FY25, the projections suggest that the EPS could jump by 55% and that the dividend could increase by 43%. These numbers suggest that Lovisa would be retaining a higher proportion of its earnings to fund its growth. In other words, the dividend payout ratio could decrease.

In FY25, the business could pay a grossed-up dividend yield of 4%. I think the dividend could grow a lot more over the rest of the decade.

FY23 is looking promising, with the company entering Canada, Poland, Hong Kong, Italy and Mexico. It's opening itself up to countries with large populations.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is not a well-known name on the ASX, but I think long-term growth of EPS and dividends could make the apparel ASX retail share stand out.

I like that the business has a fairly easy path to growth through opening new stores. It's important that the company chooses good locations that don't cost too much in rent, but its expansion strategy is going well.

At the company's annual general meeting (AGM), Universal Store revealed that total sales had grown 40% year over year, which didn't include the acquired THRILLS business numbers. It also said that the gross profit margin had improved year over year.

Commsec numbers suggest that the business is going to achieve EPS of 41 cents, putting the company at 14 times FY23's estimated earnings. EPS is predicted to grow by 30% to FY25.

This could allow the dividend to grow from 27.4 cents per share – a grossed-up dividend yield of around 7% – to 35.9 cents per share in FY25. That potential FY25 payout would be a grossed-up dividend yield of 9.1%.

The post 2 ASX growth shares that also offer incredible dividends appeared first on The Motley Fool Australia.

Here's why these ASX growth shares are rated highly by experts:

Allkem Ltd (ASX: AKE)

If you're not averse to investing in the mining sector, then the first ASX growth share to consider is Allkem. It is one of the world's largest lithium miners with a collection of projects in Argentina, Australia, and North America.

Allkem is already producing a lot of lithium from these projects, but it won't be stopping there. Management aims to grow its production multiples times current levels in the coming years in order to maintain a 10% share of global lithium supply over the long term.

Goldman Sachs may be bearish on lithium prices but it is bullish on Allkem. This is due to its production growth and exposure to several lithium types. The latter includes moving downstream from spodumene into lithium chemicals, which it sees as a margin accretive opportunity.

The broker has a buy rating and $15.50 price target on Allkem's shares.

Lovisa Holdings Limited (ASX: LOV)

This fast-fashion jewellery retailer could be another top ASX growth share to buy right now.

It has been tipped to grow strongly in the coming years thanks to the popularity of its affordable offering, its focus on younger consumers, and its ambitious global expansion plans. The latter is being driven by a management team that has been here before and successfully grown other retail brands globally.

It is for this reason that Morgans believes Lovisa has the potential to "be one of the biggest success stories in Australian retail."

Morgans currently has an add rating and $28.50 price target on its shares.

The post 2 explosive ASX growth shares to buy now according to analysts appeared first on The Motley Fool Australia.

Now, I'm not about to say that investors should jump in and buy the next hottest thing to get rich. That has the potential to turn out badly.

However, investors may be wondering about the best way to become wealthy. Personally, I prefer investing in ASX shares because of how little groundwork is required, and unlike property investment, you don't have to take on piles of debt to participate.

These days, people can get a decent return from savings accounts. But I don't think they're the best choice for growing wealth. Saving is good, but it could take a lot of money to become a millionaire through a savings account.

Let's say we use a savings account with an interest rate of 3.5%. Someone would need to save around $3,000 per month to get to approximately $1 million after 20 years.

How ASX shares can accelerate wealth

Here's an example of how ASX shares can produce good returns for investors.

At 31 December 2022, Vanguard Australian Shares Index ETF (ASX: VAS) had returned an average of 8.5% per annum over the prior 10 years. The average has now increased given the exchange-traded fund's (ETF) recent performance, up around 9% since the start of 2023.

If someone put $2,900 per month into the ASX share market and that investment returned an average of 9% per annum over the next 20 years, this would become $1.78 million.

But, we're not aiming for $1.78 million.

To get to $1 million, we'd only need to invest $1,650 per month if our investments returned 9% per annum.

What to look out for

The ASX share market is a good place to invest. However, it's dominated by large bank and mining shares such as Commonwealth Bank of Australia (ASX: CBA), ANZ Group Holdings Ltd (ASX: ANZ), BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

These giants are very good at what they do, but they're already huge, so I'm not sure how much more some of these names can grow.

Smaller companies or those targeting the global economy could have better growth potential over the long term. They have a longer growth runway and more room to re-invest.

I think we can see this with the returns generated by Vanguard MSCI Index International Shares ETF (ASX: VGS), which has returned an average of 10.6% since its inception in November 2014. If this ETF were to achieve the same returns over the next two decades, with its portfolio of global shares, investors would only need to invest $1,370 per month.

Which investment options could outperform?

I believe that there are some ASX growth share investments that can achieve stronger returns than 10%.

Smaller businesses could deliver a lot of growth. I think names like Airtasker Ltd (ASX: ART), Temple & Webster Group Ltd (ASX: TPW), Adore Beauty Group Ltd (ASX: ABY), Lovisa Holdings Ltd (ASX: LOV) and Healthia Ltd (ASX: HLA) could grow a lot over the next decade.

But, there are also some other options that could deliver outperformance. ETFs such as VanEck Morningstar Wide Moat ETF (ASX: MOAT), VanEck MSCI International Quality ETF (ASX: QUAL) and Betashares Nasdaq 100 ETF (ASX: NDQ) could deliver good growth from the current valuations.

The post How to create a million-dollar ASX share portfolio in two decades appeared first on The Motley Fool Australia.

These are the shares that its analysts think offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.

The first two shares we looked at can be found here. Read on for the next two:

Domino's Pizza Enterprises Ltd (ASX: DMP)

Morgans has this pizza chain operator on its best ideas list again this month. Its analysts continue to believe that investors should be taking advantage of the share price weakness that has been caused by headwinds that will soon reverse. It explained:

DMP is, in our opinion, a high quality operator with significant brand strength, first class executive management and a global platform for long-term network expansion. Cost inflation and adverse FX movements present significant challenges to earnings at present, as evidenced by EBIT margins, which fell from 13.4% in FY21 to 11.5% in FY22. SSS sales, which averaged +6.9% in the ten years between FY11 and FY21, dropped to (0.3)% in FY22 and (1.0)% in FY23 YTD. We believe these pressures are transitory in nature. In our opinion, now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time. The recent equity raise will fund DMP's acquisition of the remaining stake in its German joint venture and keep gearing low enough to allow for future M&A optionality.

The broker has an add rating and $90.00 price target on Domino's shares.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX share that Morgans has on its best ideas list is growing fashion jewellery retailer Lovisa. Morgans thinks very highly of the company and believes it could one day become a global force thanks to its ambitious leadership team and global expansion plans. It said:

LOV may just prove to be one of the biggest success stories in Australian retail. With ambitious and well-incentivised new leadership in place, we think now is the time LOV steps up to become a global force. LOV has accelerated its organic rollout in the US and entered into a number of new markets, including Poland, Canada, Mexico and Hong Kong. It is also poised to enter the important market of Italy. Investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the returns could be stellar. We think LOV's products fill an underserved niche, offering fast fashion jewellery at prices that are attainable to the target demographic

Morgans has an add rating and $28.50 price target on Lovisa's shares.

The post Morgans names 2 more of the best ASX shares to buy in February appeared first on The Motley Fool Australia.