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Karooooo Ltd. (KARO) Stock Analysis

Temp Headwind edge

Buy WaitModerate Confidence

Technology · Software - Application

Wait for pullback to $44.05. At $46.04 the A.R:R is 1.2:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $44.05 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Sector modifier (Technology): -0.8; Negative momentum.

Karooooo Ltd. provides a mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. It operates through Cartrack, Carzuka, and Karooooo Logistics segments. The... Read more

$46.04+18.8% A.UpsideScore 6.8/10#3 of 98 Software - Application
QualityF-score8 / 9FCF yield132.96%
IncomeYield5.91%Payout68.67%
Entry $44.05(Default 5pct Sticky)Stop $39.23Target $51.98(analyst − 13%)A.R:R 1.2:1Setup A.R:R 3.1:1
Analyst target$59.74+29.8%5 analysts
$51.98our TP
$46.04price
$59.74mean
$67

Wait for pullback to $44.05. At $46.04 the A.R:R is 1.2:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $44.05 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Sector modifier (Technology): -0.8; Negative momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Growth is cheap relative to earnings, but the chart hasn't confirmed yet (PEG 0.38, quality 8.8/10, growth 8.6/10). Score 6.8/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 62d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

Recent Developments — Karooooo Ltd.

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
V7 flight-to-quality bonus: +0.5 (Q=8.8 in RISK_OFF)
Strong earnings beat streak (3/4)
High-quality business
Risks
Sector modifier (Technology): -0.8
Negative momentum

Key Metrics

P/E (TTM)24.2
P/E (Fwd)16.8
Mkt Cap$1.4B
EV/EBITDA0.6
Profit Mgn18.1%
ROE30.8%
Rev Growth18.8%
Beta0.92
Dividend5.91%
Rating analysts12

Quality Signals

Piotroski F8/9MoatWideCompounder

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker·2 ceiling hits

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Volume
0.0
Ma Position
2.2
Rsi
3.5
Obv
10.0
Volume accumulation (rising OBV)Below 200-MA but MA still rising (+0.7%/30d) — pullback in uptrend, not confirmed weakness
GatesMomentum 3.1<4.5A.R:R 1.2 < 1.5@spotInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 62d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
39 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $42.40Resistance $52.07

Price Targets

$39
$44
$52
A.Upside+12.9%
A.R:R1.2:1
Setup A.R:R (at entry)3.1:1

Position Sizing

ConvictionHigh conviction
Suggested %0.7%
Max %1.3%
RegimeRisk-Off

Risk Alerts

! Momentum score 3.1/10 — below 4.5 minimum
! Reward/Risk 1.2:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-21 (62d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is KARO stock a buy right now?

Wait for pullback to $44.05. At $46.04 the A.R:R is 1.2:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $44.05 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Sector modifier (Technology): -0.8; Negative momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Growth is cheap relative to earnings, but the chart hasn't confirmed yet (PEG 0.38, quality 8.8/10, growth 8.6/10). Target $51.98 (+12.9%), stop $39.23 (−17.4%), Setup A.R:R 3.1:1. Score 6.8/10, moderate confidence.

What is the KARO stock price target?

Take-profit target: $51.98 (+18.8% upside). Target $51.98 (+12.9%), stop $39.23 (−17.4%), Setup A.R:R 3.1:1. Stop-loss: $39.23.

What are the risks of investing in KARO?

Sector modifier (Technology): -0.8; Negative momentum.

Is KARO overvalued or undervalued?

Karooooo Ltd. trades at a P/E of 24.2 (forward 16.8). TrendMatrix value score: 8.0/10. Verdict: Buy (Wait for Entry).

What do analysts say about KARO?

12 analysts cover KARO with a consensus score of 4.2/5. Average price target: $60.

What does Karooooo Ltd. do?Karooooo Ltd. provides a mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, the...

Karooooo Ltd. provides a mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. It operates through Cartrack, Carzuka, and Karooooo Logistics segments. The company offers Fleet Management, which provides real-time visibility into the asset base; LiveVision for pro-active risk management and fleet visibility; MiFleet advanced fleet administration for cost management and administration capabilities; and Karooooo Logistics, a software application for management of last-mile delivery and general operational logistics. It also provides Cartrack Field Service, a software application for management of field and on-site workers; Business Intelligence for view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assist vehicle owners and insurance companies with the recovery of vehicles and other assets; insurance telematics that allows insurers to tailor premiums for commercial and consumer customers using analytics; Protector, a safety package for consumer vehicles; and Car Watch, a mobile application that lets users track and watch their vehicles. In addition, the company offers Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitates active credit management for asset-based vehicle finance; an electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka and Cartrack insurance agency, as well as smart IoT products. It serves consumers and sole proprietors, small and medium-sized businesses, and large enterprises. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.

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