Karooooo (NASDAQ:KARO) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Karooooo from "hold" to "buy", joined by Weiss Ratings (upgraded to buy) and Roth MKM (initiated coverage with a $62 target); the consensus is a "Moderate Buy" with an average analyst target of $59.
• Karooooo beat quarterly estimates, reporting $0.49 EPS vs $0.46 expected and $82.34M revenue vs $79.04M, with strong margins (net margin 19.45%, ROE 31.83%) and FY2026 EPS guidance of 1.876–2.049.
• Shares trade near $47.21 with a $1.46B market cap and a P/E of about 25.5, inside a one-year range of $35.88–$63.36, while several institutional investors have recently adjusted their stakes.

Karooooo (NASDAQ:KARO - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday.

Other analysts have also recently issued reports about the stock. Weiss Ratings raised shares of Karooooo from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, January 27th. Roth Mkm began coverage on Karooooo in a research report on Tuesday, February 17th. They set a "buy" rating and a $62.00 price target on the stock. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, Karooooo presently has a consensus rating of "Moderate Buy" and an average target price of $59.00.

Karooooo Price Performance

Shares of KARO stock opened at $47.21 on Friday. The stock's fifty day simple moving average is $47.31 and its 200 day simple moving average is $48.39. Karooooo has a one year low of $35.88 and a one year high of $63.36. The firm has a market cap of $1.46 billion, a price-to-earnings ratio of 25.52 and a beta of 1.07. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.84 and a quick ratio of 0.84.

Karooooo (NASDAQ:KARO - Get Free Report) last issued its quarterly earnings data on Tuesday, January 20th. The company reported $0.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.46 by $0.03. Karooooo had a return on equity of 31.83% and a net margin of 19.45%.The company had revenue of $82.34 million during the quarter, compared to analysts' expectations of $79.04 million. Karooooo has set its FY 2026 guidance at 1.876-2.049 EPS. On average, analysts expect that Karooooo will post 1.57 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Karooooo

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Lazard Asset Management LLC raised its stake in shares of Karooooo by 7.5% in the third quarter. Lazard Asset Management LLC now owns 6,139 shares of the company's stock worth $351,000 after acquiring an additional 430 shares during the last quarter. Jones Financial Companies Lllp grew its stake in shares of Karooooo by 159.4% during the third quarter. Jones Financial Companies Lllp now owns 804 shares of the company's stock valued at $46,000 after purchasing an additional 494 shares during the last quarter. Murphy & Mullick Capital Management Corp increased its holdings in shares of Karooooo by 260.0% in the third quarter. Murphy & Mullick Capital Management Corp now owns 900 shares of the company's stock valued at $51,000 after purchasing an additional 650 shares in the last quarter. Bank of America Corp DE raised its position in Karooooo by 17.2% in the 2nd quarter. Bank of America Corp DE now owns 5,100 shares of the company's stock worth $250,000 after purchasing an additional 750 shares during the last quarter. Finally, Harbour Capital Advisors LLC raised its position in Karooooo by 16.7% in the 4th quarter. Harbour Capital Advisors LLC now owns 5,425 shares of the company's stock worth $242,000 after purchasing an additional 775 shares during the last quarter.

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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