Karooooo

KARO · NASDAQ

$64.07+$0.42 (+0.66%)TodayMarket closed · Oct 23, 7:30 PM ET

Prev close $63.65

KARO analyst rating

BuyConsensus of 5 analysts over the last 12 months. 80% rate it a buy.

Strong buy0
Buy4
Hold1
Underperform0
Sell0

12-month price target · 7 analysts

Average $76.30 (+19.1% upside)

Low: $70.70
Now: $64.07
High: $84.00

Upgrades and downgrades

The latest rating actions, newest first

KARO analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Freedom Broker	Oct 22, 2026	Maintains	Hold	$65.00 → $70.00	65%
Raymond James	Jul 17, 2026	Maintains	Outperform	$60.00 → $75.00	36%
Freedom Broker	Jul 17, 2026	Downgrade	Buy → Hold	$60.00 → $65.00	65%
Needham	Jul 16, 2026	Maintains	Buy	$70.00 → $75.00	50%
Needham	Jul 14, 2026	Maintains	Buy	$60.00 → $70.00	50%
UBS	May 15, 2026	Maintains	Buy	$60.00 → $55.00	49%
Roth Capital	Feb 17, 2026	Initiates	Buy	$62.00	49%
Freedom Broker	Jan 23, 2026	Maintains	Buy	$63.00 → $61.00	65%

The case for and against

Updated Oct 18, 2026

Bull case

Karooooo is positioned well because its vertically integrated telematics platform has driven market share gains over the last two decades, while low penetration in emerging markets supports management’s 19% subscription growth objective and FY27 Cartrack subscription revenue guidance of R5,700-R6,000mm. The company also showed strong execution in 1Q27, with revenue up 22.5% Y/Y to R1,564mm, adjusted EBITDA up 18.1% Y/Y to R642mm at a 41.1% margin, and record net new subscribers of 142,472, up 69.6% Y/Y, largely driven by Tag cross-sell. South Africa remains a key growth engine, with subscriber growth of 18% there, and the business combines high-teens growth with strong unit economics, including a targeted 70%-72% gross margin and 15%+ free cash flow margin profile.

Bear case

Karooooo is facing a negative fundamental setup because competitive risks and pricing degradation could push subscription growth below 17%, driving multiple contraction and weaker overall estimates. Its heavy reliance on Cartrack and South Africa increases vulnerability to macro turmoil, currency fluctuations, and emerging-market slowdowns, while local-currency billing and USD cash holdings create translation and FX risk. In addition, the business must maintain strong customer support to avoid churn to other vendors, limiting upside to subscriber growth relative to prior quarters.

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