Karooooo (NASDAQ:KARO) Coverage Initiated at UBS Group

Key Points

• Karooooo has been upgraded to a strong-buy rating by UBS Group, indicating a positive shift in sentiment from a previous "neutral" rating.
• The stock currently has a consensus rating of "Buy" with a consensus target price of $58.25, following a mix of upgrades and downgrades from various research firms.
• Karooooo reported earnings of $0.47 per share for the latest quarter, beating expectations, and has set fiscal year 2026 guidance for earnings per share between 1.760-1.920.

Investment analysts at UBS Group initiated coverage on shares of Karooooo (NASDAQ:KARO - Get Free Report) in a research report issued on Friday, Marketbeat Ratings reports. The brokerage set a "buy" rating and a $60.00 price target on the stock. UBS Group's price objective suggests a potential upside of 15.27% from the stock's current price.

A number of other brokerages also recently weighed in on KARO. Zacks Research raised shares of Karooooo to a "strong-buy" rating in a report on Tuesday, August 12th. Morgan Stanley reissued an "overweight" rating and issued a $53.00 price target (up from $43.00) on shares of Karooooo in a report on Thursday, June 26th. Raymond James Financial reissued an "outperform" rating and issued a $60.00 price target (up from $58.00) on shares of Karooooo in a report on Thursday, July 24th. Needham & Company LLC initiated coverage on shares of Karooooo in a report on Wednesday, July 16th. They issued a "buy" rating and a $60.00 price target on the stock. Finally, Wall Street Zen downgraded shares of Karooooo from a "strong-buy" rating to a "buy" rating in a report on Friday, August 22nd. One analyst has rated the stock with a Strong Buy rating and four have assigned a Buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $58.25.

Karooooo Stock Performance

Shares of NASDAQ:KARO traded down $0.60 during midday trading on Friday, reaching $52.05. The company had a trading volume of 58,616 shares, compared to its average volume of 51,880. The company's 50 day moving average price is $48.66 and its 200 day moving average price is $46.83. The company has a current ratio of 1.17, a quick ratio of 1.16 and a debt-to-equity ratio of 0.05. The stock has a market cap of $1.61 billion, a P/E ratio of 30.26 and a beta of 1.08. Karooooo has a 52-week low of $34.01 and a 52-week high of $63.36.

Karooooo (NASDAQ:KARO - Get Free Report) last issued its quarterly earnings results on Tuesday, July 22nd. The company reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.02. The company had revenue of $70.49 million for the quarter, compared to the consensus estimate of $1.25 billion. Karooooo had a net margin of 20.23% and a return on equity of 31.48%. Karooooo has set its FY 2026 guidance at 1.760-1.920 EPS. As a group, sell-side analysts anticipate that Karooooo will post 1.57 EPS for the current fiscal year.

Hedge Funds Weigh In On Karooooo

A number of large investors have recently modified their holdings of the company. Squarepoint Ops LLC boosted its position in shares of Karooooo by 26.1% in the second quarter. Squarepoint Ops LLC now owns 12,163 shares of the company's stock valued at $596,000 after acquiring an additional 2,518 shares during the period. State of Tennessee Department of Treasury bought a new position in shares of Karooooo in the second quarter valued at approximately $214,000. BNP Paribas Financial Markets boosted its position in shares of Karooooo by 154.5% in the second quarter. BNP Paribas Financial Markets now owns 5,045 shares of the company's stock valued at $247,000 after acquiring an additional 3,063 shares during the period. Bank of America Corp DE boosted its position in shares of Karooooo by 17.2% in the second quarter. Bank of America Corp DE now owns 5,100 shares of the company's stock valued at $250,000 after acquiring an additional 750 shares during the period. Finally, Jane Street Group LLC bought a new position in shares of Karooooo in the second quarter valued at approximately $269,000.

About Karooooo

Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics.