Karooooo (NASDAQ:KARO) Price Target Cut to $55.00 by Analysts at UBS Group

Key Points

• UBS Group cut its price target on Karooooo to $55 from $60, while keeping a buy rating on the stock. The new target still implies about 20% upside from the current share price.
• Analyst sentiment remains broadly positive overall, with six Buy ratings and one Hold, and a consensus Moderate Buy rating. The average target price among analysts is $59.20.
• Karooooo recently reported quarterly EPS of $0.45 on revenue of $90.93 million, and the stock traded at $45.80 on Friday. The company also has a market cap of about $1.41 billion.

Karooooo (NASDAQ:KARO - Get Free Report) had its target price decreased by equities research analysts at UBS Group from $60.00 to $55.00 in a research report issued on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. UBS Group's price target would suggest a potential upside of 20.10% from the company's current price.

Other equities analysts have also issued reports about the stock. Wall Street Zen upgraded shares of Karooooo from a "hold" rating to a "buy" rating in a research report on Saturday, April 11th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Karooooo in a research report on Friday, April 24th. Finally, Roth Mkm reiterated a "buy" rating and issued a $68.00 price target on shares of Karooooo in a research report on Thursday. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $59.20.

Karooooo Stock Performance

Shares of KARO traded up $1.21 during midday trading on Friday, reaching $45.80. 163,254 shares of the stock were exchanged, compared to its average volume of 62,038. Karooooo has a twelve month low of $41.25 and a twelve month high of $63.36. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.84 and a quick ratio of 0.84. The company has a market capitalization of $1.41 billion, a price-to-earnings ratio of 24.75 and a beta of 0.92. The business's 50-day moving average price is $48.89 and its 200 day moving average price is $47.20.

Karooooo (NASDAQ:KARO - Get Free Report) last released its quarterly earnings results on Tuesday, April 14th. The company reported $0.45 earnings per share (EPS) for the quarter. The firm had revenue of $90.93 million for the quarter. Karooooo had a return on equity of 31.60% and a net margin of 18.07%. On average, sell-side analysts expect that Karooooo will post 2.24 EPS for the current fiscal year.

Institutional Trading of Karooooo

Several institutional investors and hedge funds have recently bought and sold shares of KARO. DGS Capital Management LLC raised its position in Karooooo by 5.7% during the 1st quarter. DGS Capital Management LLC now owns 7,359 shares of the company's stock worth $367,000 after buying an additional 398 shares during the last quarter. Renaissance Technologies LLC raised its position in Karooooo by 1.4% during the 1st quarter. Renaissance Technologies LLC now owns 27,987 shares of the company's stock worth $1,395,000 after buying an additional 400 shares during the last quarter. Lazard Asset Management LLC raised its position in Karooooo by 7.5% during the 3rd quarter. Lazard Asset Management LLC now owns 6,139 shares of the company's stock worth $351,000 after buying an additional 430 shares during the last quarter. Jones Financial Companies Lllp raised its position in Karooooo by 159.4% during the 3rd quarter. Jones Financial Companies Lllp now owns 804 shares of the company's stock worth $46,000 after buying an additional 494 shares during the last quarter. Finally, Murphy & Mullick Capital Management Corp raised its position in Karooooo by 260.0% during the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 900 shares of the company's stock worth $51,000 after buying an additional 650 shares during the last quarter.

Trending Headlines about Karooooo

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Karooooo raised its FY 2027 EPS guidance to ZAR 38.5-ZAR 40, above Wall Street expectations, signaling management confidence in future profitability. Karooooo (KARO) Q4 2026 Earnings Transcript
• Positive Sentiment: The company reported record subscription revenue growth in Q4, including 22% year-over-year growth in Cartrack South Africa subscription revenue and 18% growth in SaaS ARR, reinforcing the long-term growth story. Karooooo Delivers Accelerating Subscription Revenue Growth and Strong Cash Flow in FY 2026
• Positive Sentiment: Karooooo announced an annual dividend of $1.50 per share, up 20% from the prior year, which may support investor sentiment. Karooooo Ltd. earnings report
• Neutral Sentiment: Fourth-quarter revenue of $90.93 million topped estimates, but EPS of $0.44 came in below consensus, creating a mixed earnings reaction. Karooooo Ltd. earnings report
• Neutral Sentiment: Management also acknowledged margin pressure, suggesting investors are balancing strong growth against some near-term profitability squeeze. Karooooo Ltd. Bets on Growth Amid Margin Squeeze
• Negative Sentiment: The Q4 EPS miss versus analyst expectations could weigh on the stock as traders focus on profitability coming in softer than forecast. Karooooo Ltd. (KARO) Lags Q4 Earnings Estimates

Karooooo Company Profile

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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