Karooooo (NASDAQ:KARO) Stock Rating Lowered by Freedom Capital

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

KARO has been the subject of a number of other reports. Zacks Research upgraded shares of Karooooo from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 7th. Needham & Company LLC increased their price target on Karooooo from $60.00 to $70.00 and gave the stock a “buy” rating in a research report on Tuesday. UBS Group reaffirmed a “buy” rating and set a $75.00 price target on shares of Karooooo in a research report on Thursday. Raymond James Financial lifted their price objective on Karooooo from $60.00 to $75.00 and gave the company an “outperform” rating in a research note on Friday. Finally, Roth Capital reissued a “buy” rating and issued a $74.00 price objective on shares of Karooooo in a report on Friday. One investment 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 stock. According to data from MarketBeat, Karooooo has a consensus rating of “Buy” and a consensus target price of $73.50.

Karooooo Stock Performance

KARO opened at $62.69 on Friday. The company has a current ratio of 1.02, a quick ratio of 1.05 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 has a 50 day moving average of $50.13 and a two-hundred day moving average of $48.81. The firm has a market capitalization of $1.94 billion, a PE ratio of 31.82 and a beta of 0.89.

Karooooo (NASDAQ:KARO) last released its quarterly earnings data on Wednesday, July 15th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.51 by $0.08. The business 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 anticipate that Karooooo will post 2.37 EPS for the current year.

Hedge Funds Weigh In On Karooooo

A number of hedge funds have recently bought and sold shares of the business. DGS Capital Management LLC grew its holdings in Karooooo by 5.7% in the first quarter. DGS Capital Management LLC now owns 7,359 shares of the company’s stock valued at $367,000 after purchasing an additional 398 shares during the period. Renaissance Technologies LLC raised its stake in shares of Karooooo by 1.4% during the 1st quarter. Renaissance Technologies LLC now owns 27,987 shares of the company’s stock worth $1,395,000 after buying an additional 400 shares during the period. Lazard Asset Management LLC raised its stake in shares of Karooooo by 7.5% during the 3rd quarter. Lazard Asset Management LLC now owns 6,139 shares of the company’s stock worth $351,000 after buying an additional 430 shares during the period. Bank of America Corp DE lifted its position in shares of Karooooo by 17.2% during the 2nd quarter. Bank of America Corp DE now owns 5,100 shares of the company’s stock valued at $250,000 after buying an additional 750 shares in the last quarter. Finally, Harbour Capital Advisors LLC lifted its position in shares of Karooooo by 16.7% during the 4th quarter. Harbour Capital Advisors LLC now owns 5,425 shares of the company’s stock valued at $242,000 after buying an additional 775 shares in the last quarter.

Key Stories Impacting Karooooo

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.