Karooooo (NASDAQ:KARO) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research has downgraded Karooooo (NASDAQ:KARO) from a "strong-buy" to a "hold" rating, reflecting adjustments in analyst outlook.
• Despite the downgrade, multiple brokerages, including Needham & Company and Raymond James, maintain positive ratings with price targets set around $60.00.
• Karooooo posted a quarterly EPS of $0.47, surpassing estimates, but reported revenue significantly below expectations at $70.49 million, prompting mixed analyst sentiments.

Karooooo (NASDAQ:KARO - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Thursday, September 11th,Zacks.com reports.

KARO has been the subject of several other research reports. Wall Street Zen cut shares of Karooooo from a "strong-buy" rating to a "buy" rating in a research note on Friday, August 22nd. Raymond James Financial reiterated an "outperform" rating and issued a $60.00 target price (up previously from $58.00) on shares of Karooooo in a research note on Thursday, July 24th. Morgan Stanley reiterated an "overweight" rating and issued a $53.00 target price (up previously from $43.00) on shares of Karooooo in a research note on Thursday, June 26th. UBS Group initiated coverage on shares of Karooooo in a research note on Friday, August 29th. They issued a "buy" rating and a $60.00 target price for the company. Finally, Needham & Company LLC initiated coverage on shares of Karooooo in a research report on Wednesday, July 16th. They issued a "buy" rating and a $60.00 price target for the company. Four analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, Karooooo currently has an average rating of "Moderate Buy" and a consensus price target of $58.25.

Karooooo Stock Performance

KARO stock traded up $1.17 during mid-day trading on Thursday, reaching $56.33. 25,336 shares of the stock traded hands, compared to its average volume of 49,954. The company has a quick ratio of 1.16, a current ratio of 1.17 and a debt-to-equity ratio of 0.05. Karooooo has a 52 week low of $35.51 and a 52 week high of $63.36. The business has a 50-day moving average of $49.86 and a two-hundred day moving average of $47.42. The firm has a market capitalization of $1.74 billion, a PE ratio of 32.83 and a beta of 1.08.

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

Institutional Trading of Karooooo

Several hedge funds have recently modified their holdings of KARO. Squarepoint Ops LLC grew its stake in shares of Karooooo by 6.8% during the fourth quarter. Squarepoint Ops LLC now owns 9,494 shares of the company's stock valued at $429,000 after purchasing an additional 602 shares during the last quarter. Northern Trust Corp bought a new stake in shares of Karooooo during the fourth quarter valued at approximately $340,000. BNP Paribas Financial Markets bought a new position in Karooooo in the fourth quarter valued at approximately $210,000. Acadian Asset Management LLC grew its holdings in Karooooo by 77.9% during the 1st quarter. Acadian Asset Management LLC now owns 46,454 shares of the company's stock worth $1,955,000 after acquiring an additional 20,347 shares during the period. Finally, Capricorn Fund Managers Ltd grew its holdings in Karooooo by 8.0% during the 1st quarter. Capricorn Fund Managers Ltd now owns 143,470 shares of the company's stock worth $6,103,000 after acquiring an additional 10,586 shares during the period.

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.