Karooooo (NASDAQ:KARO) Rating Lowered to Hold at Freedom Capital

Karooooo (NASDAQ:KARO) was downgraded by equities researchers at Freedom Capital from a “strong-buy” rating to a “hold” rating in a research note issued on Friday,Zacks.com reports.

Several other analysts have also issued reports on KARO. Weiss Ratings reiterated a “buy (b-)” rating on shares of Karooooo in a research report on Friday, April 24th. Zacks Research upgraded shares of Karooooo from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 7th. Roth Capital restated a “buy” rating and set a $74.00 target price on shares of Karooooo in a research note on Friday. Raymond James Financial raised their target price on Karooooo from $60.00 to $75.00 and gave the company an “outperform” rating in a report on Friday. Finally, Wall Street Zen lowered Karooooo from a “buy” rating to a “hold” rating in a research note on Sunday, June 21st. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $73.50.

Karooooo Trading Down 3.8%

Shares of Karooooo stock opened at $62.69 on Friday. The company 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 quick ratio of 1.05, a current ratio of 1.02 and a debt-to-equity ratio of 0.15. Karooooo has a 12-month low of $41.25 and a 12-month high of $66.19. The firm’s 50-day moving average price is $50.13 and its two-hundred day moving average price is $48.81.

Karooooo (NASDAQ:KARO) last released its earnings results on Wednesday, July 15th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.51 by $0.08. The firm had revenue of $96.26 million for the quarter. Karooooo had a net margin of 17.74% and a return on equity of 31.97%. Karooooo has set its FY 2027 guidance at 2.334-2.425 EPS. On average, analysts forecast that Karooooo will post 2.41 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Capricorn Fund Managers Ltd raised its position in Karooooo by 39.4% in the fourth quarter. Capricorn Fund Managers Ltd now owns 238,078 shares of the company’s stock valued at $10,833,000 after purchasing an additional 67,322 shares during the last quarter. Marshall Wace LLP grew its holdings in shares of Karooooo by 699.1% during the second quarter. Marshall Wace LLP now owns 55,602 shares of the company’s stock worth $2,723,000 after purchasing an additional 48,644 shares during the last quarter. Two Sigma Investments LP increased its stake in shares of Karooooo by 115.4% in the third quarter. Two Sigma Investments LP now owns 74,130 shares of the company’s stock valued at $4,234,000 after buying an additional 39,709 shares during the period. Aurora Investment Counsel acquired a new position in shares of Karooooo in the fourth quarter valued at approximately $1,651,000. Finally, Russell Investments Group Ltd. bought a new position in Karooooo in the 2nd quarter valued at approximately $1,378,000.

Key Karooooo News

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 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.