Karooooo Ltd. (NASDAQ:KARO) Receives Consensus Recommendation of “Buy” from Analysts

Karooooo Ltd. (NASDAQ:KARO) has received an average recommendation of “Buy” from the seven brokerages that are presently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a hold recommendation, five have given a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $73.50.

KARO has been the topic of a number of research analyst reports. Zacks Research upgraded Karooooo from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 7th. UBS Group restated a “buy” rating and issued a $75.00 price target on shares of Karooooo in a research report on Thursday. Raymond James Financial boosted their price objective on shares of Karooooo from $60.00 to $75.00 and gave the stock an “outperform” rating in a research report on Friday. Wall Street Zen cut shares of Karooooo from a “buy” rating to a “hold” rating in a research note on Sunday, June 21st. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Karooooo in a report on Friday, April 24th.

Karooooo News Summary

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Raymond James raised its price target on Karooooo from $60 to $75 and reiterated an outperform rating, signaling confidence in further upside from current levels.
• Positive Sentiment: The company reported a strong Q1 earnings beat, with revenue up 22% and earnings per share above expectations, reinforcing the view that core business momentum remains intact. Karooooo Ltd. (KARO) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Subscriber growth in Cartrack accelerated, including reports of record subscriber additions and 18% growth in the quarter, which supports expectations for continued subscription revenue expansion. Karooooo’s growth bet pays off with record subscriber haul
• Neutral Sentiment: Investors also pointed to healthy margins, a strong cash position, and dividend support, which help offset foreign-exchange pressure and keep the balance sheet flexible.
• Neutral Sentiment: Karooooo’s Q1 results presentation and related coverage largely reinforced the same growth narrative rather than introducing a new catalyst. Karooooo Ltd. 2027 Q1 – Results – Earnings Call Presentation
• Negative Sentiment: Some margin compression from FX headwinds and higher sales and marketing spending could temper enthusiasm, though these issues have not yet outweighed the company’s growth story.

Karooooo Price Performance

Shares of NASDAQ:KARO opened at $62.69 on Monday. The business’s 50 day simple moving average is $50.13 and its 200-day simple moving average is $48.83. The firm has a market capitalization of $1.94 billion, a price-to-earnings ratio of 31.82 and a beta of 0.89. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.02 and a quick ratio of 1.01. Karooooo has a 12 month low of $41.25 and a 12 month high of $66.19.

Karooooo (NASDAQ:KARO) last released its quarterly earnings results on Wednesday, July 15th. The company reported $0.59 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.08. Karooooo had a return on equity of 32.03% and a net margin of 17.74%.The business had revenue of $96.26 million for the quarter. Karooooo has set its FY 2027 guidance at 2.334-2.425 EPS. As a group, equities analysts forecast that Karooooo will post 2.41 earnings per share for the current fiscal year.

Karooooo Increases Dividend

The firm also recently declared an annual dividend, which will be paid on Monday, July 27th. Shareholders of record on Friday, July 17th will be issued a $1.50 dividend. This represents a dividend yield of 239.0%. This is a boost from Karooooo’s previous annual dividend of $1.25. The ex-dividend date of this dividend is Friday, July 17th. Karooooo’s payout ratio is currently 76.14%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Fideuram Asset Management Ireland dac acquired a new position in shares of Karooooo during the 4th quarter worth approximately $80,000. Royal Bank of Canada increased its position in Karooooo by 852.9% during the fourth quarter. Royal Bank of Canada now owns 2,954 shares of the company’s stock worth $135,000 after buying an additional 2,644 shares in the last quarter. Quantbot Technologies LP acquired a new position in shares of Karooooo in the second quarter worth $156,000. New York State Common Retirement Fund raised its holdings in shares of Karooooo by 465.6% in the second quarter. New York State Common Retirement Fund now owns 3,258 shares of the company’s stock worth $160,000 after acquiring an additional 2,682 shares during the last quarter. Finally, State of Tennessee Department of Treasury purchased a new stake in shares of Karooooo in the second quarter valued at $214,000.

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.