Karooooo Ltd. (NASDAQ:KARO) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts rate KARO a "Moderate Buy" — seven firms cover the stock (six buy, one hold) with a consensus 1‑year price target of $59 and recent upgrades including Roth MKM's $62 target.
• Recent results beat expectations: Karooooo reported $0.49 EPS vs. $0.46 estimate and $82.34M revenue vs. $79.04M, with a 19.45% net margin, 31.83% ROE and FY2026 guidance of 1.876–2.049 EPS.
• Shares trade around $50.75 with a $1.57B market cap and P/E of 27.43, and several institutional investors (Capricorn, Marshall Wace, Two Sigma) have recently increased their positions.

Shares of Karooooo Ltd. (NASDAQ:KARO - Get Free Report) have been assigned an average rating of "Moderate Buy" from the seven research firms that are currently covering the stock, Marketbeat reports. One research analyst has rated the stock with a hold rating and six have issued a buy rating on the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $59.00.

Several research firms have issued reports on KARO. Roth Mkm began coverage on shares of Karooooo in a research report on Tuesday, February 17th. They set a "buy" rating and a $62.00 price target on the stock. Weiss Ratings raised shares of Karooooo from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, January 27th. Finally, Wall Street Zen raised shares of Karooooo from a "hold" rating to a "buy" rating in a research report on Saturday.

Karooooo Stock Performance

NASDAQ KARO opened at $50.75 on Friday. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.06. The firm's fifty day moving average price is $47.94 and its two-hundred day moving average price is $47.64. Karooooo has a 1 year low of $37.73 and a 1 year high of $63.36. The firm has a market capitalization of $1.57 billion, a P/E ratio of 27.43 and a beta of 1.02.

Karooooo (NASDAQ:KARO - Get Free Report) last posted its quarterly earnings results on Tuesday, January 20th. The company reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.03. Karooooo had a net margin of 19.45% and a return on equity of 31.83%. The firm had revenue of $82.34 million for the quarter, compared to analyst estimates of $79.04 million. Karooooo has set its FY 2026 guidance at 1.876-2.049 EPS. As a group, research analysts anticipate that Karooooo will post 1.57 EPS for the current year.

Hedge Funds Weigh In On Karooooo

Several large investors have recently modified their holdings of KARO. Capricorn Fund Managers Ltd raised its position in shares of Karooooo by 39.4% in the fourth quarter. Capricorn Fund Managers Ltd now owns 238,078 shares of the company's stock valued at $10,833,000 after purchasing an additional 67,322 shares during the period. Marshall Wace LLP raised its position in shares of Karooooo by 699.1% in the second quarter. Marshall Wace LLP now owns 55,602 shares of the company's stock valued at $2,723,000 after purchasing an additional 48,644 shares during the period. Two Sigma Investments LP raised its position in shares of Karooooo by 115.4% in the third quarter. Two Sigma Investments LP now owns 74,130 shares of the company's stock valued at $4,234,000 after purchasing an additional 39,709 shares during the period. Aurora Investment Counsel bought a new position in shares of Karooooo in the fourth quarter valued at about $1,651,000. Finally, Russell Investments Group Ltd. bought a new position in shares of Karooooo in the second quarter valued at about $1,378,000.

About Karooooo

Karooooo Ltd is a global provider of telematics software-as-a-service solutions for vehicle and fleet management. Through its flagship platform, the company delivers real-time GPS tracking, stolen vehicle recovery and driver behaviour analytics, enabling commercial fleets and automotive insurers to optimise operations, increase safety and reduce costs.

Karooooo's SaaS platform integrates proprietary hardware devices with cloud-based analytics and mobile applications. Customers gain access to live vehicle location data, engine diagnostics, route planning tools and customizable reporting dashboards.

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