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KAROKarooooo Ltd.Hold6.7·$57.44+6.63%
HoldModerate Confidence
Investment thesis

A high-quality, attractively valued technology franchise with a wide economic moat, strong margins, and constructive price momentum; the near-term constraint is that the current price sits above the optimal entry target of $44.75, making patience for a pullback the logical posture before committing capital.

Thesis pillars

  • High Quality Compounding FranchiseStable
  • Attractive ValuationStable
  • Earnings Beat RecordStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Karooooo Ltd. (KARO) Stock Analysis

Catalyst-Driven edge

HoldModerate Confidence

Technology · Software - Application

Hold if already holding. Not a fresh buy at $57.44, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Overbought (RSI 77).

Karooooo Ltd. provides software applications for fleet management, mobile asset tracking, workforce management, and video solutions in South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. It operates through Cartrack, Carzuka, and... Read more

$57.44+14.7% A.UpsideScore 6.7/10#5 of 122 Software - Application
QualityF-score8 / 9FCF yield49.62%
IncomeYield5.10%Payout68.67%
Entry $48.52(50-day MA)Stop $45.12Target $55.63(resistance)A.R:R -0.3:1
Analyst target$61.32+6.8%5 analysts
$55.63our TP
$57.44price
$61.32mean
$56
$69

Hold if already holding. Not a fresh buy at $57.44, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Overbought (RSI 77). Chart setup: No clear chart pattern; technical signals are mixed. Downgraded from BUY WAIT — price $56.32 has reached target $55.63. No upside to wait for. Score 6.7/10, moderate confidence.

Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 16d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-07
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Jul 21, 202616d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (3/4)
High-quality business
Attractive valuation
Risks
Analyst target reached - limited upside remaining
Overbought (RSI 77)

Key Metrics

P/E (TTM)27.5
P/E (Fwd)19.3
Mkt Cap$1.7B
EV/EBITDA0.8
Profit Mgn18.1%
ROE30.8%
Rev Growth18.8%
Beta0.89
Dividend5.10%
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.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.0
Support Resistance
0.4
52w Position
8.3
GatesA.R:R -0.3=NEGATIVEMomentum 7.9>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 16d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
77 · Overbought
20D MA 50D MA 200D MAGOLDEN CROSSSupport $44.05Resistance $56.77

Price Targets

$45
$49
$56
A.Upside-3.2%
A.R:R-0.3:1

Position Sizing

ConvictionHigh conviction
Suggested %0.7%
Max %1.4%
RegimeSteady

Risk Alerts

! Target reached (-5.3% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-21 (16d)

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?

Hold if already holding. Not a fresh buy at $57.44, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Overbought (RSI 77). Chart setup: No clear chart pattern; technical signals are mixed. Downgraded from BUY WAIT — price $56.32 has reached target $55.63. No upside to wait for. Target $55.63 (-3.2%), stop $45.12 (−27.3%), A.R:R -0.3:1. Score 6.7/10, moderate confidence.

What is the KARO stock price target?

Take-profit target: $55.63 (+14.7% upside). Target $55.63 (-3.2%), stop $45.12 (−27.3%), A.R:R -0.3:1. Stop-loss: $45.12.

What are the risks of investing in KARO?

Analyst target reached - limited upside remaining; Overbought (RSI 77).

Is KARO overvalued or undervalued?

Karooooo Ltd. trades at a P/E of 27.5 (forward 19.3). TrendMatrix value score: 7.4/10. Verdict: Hold.

What do analysts say about KARO?

12 analysts cover KARO with a consensus score of 4.2/5. Average price target: $61.

What does Karooooo Ltd. do?Karooooo Ltd. provides software applications for fleet management, mobile asset tracking, workforce management, and...

Karooooo Ltd. provides software applications for fleet management, mobile asset tracking, workforce management, and video solutions 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 Cartrack, a mobility SaaS cloud that provides systems integration, fleet management and administration, field worker management, video-based safety, risk mitigation and compliance, delivery management, and reporting solutions; and Karooooo Logistics, a software application for management of last-mile delivery and general operational logistics. It also provides physical and e-commerce vehicle buying and selling marketplace. The company serves consumers and sole proprietors, small and medium-sized businesses, and large enterprises. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.

Related stocks: YB (Yuanbao Inc.) · HKD (AMTD Digital Inc.) · PTC (PTC Inc.) · YMM (Full Truck Alliance Co. Ltd.) · GRND (Grindr Inc.)
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