Should I Buy KARO? KARO 2026 Analysis

Should You Buy Karooooo Ltd (KARO) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

49.990

1 Day change

4.32%

52 Week Range

63.360

Analysis Updated At

2026/02/05

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Buy now (pre-market ~~$48.41): price is sitting right on the pivot/support zone (~~48.40), while fundamentals and analyst upside remain favorable.
Near-term technicals are neutral (not overheated), so you’re not chasing an extended move.
Intellectia Proprietary Trading Signals:
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.
Street view is still Buy with a $61 target (meaningful upside vs current price), and recent news flow is positive.
Hedge funds/insiders show no strong recent positioning shifts; no congress activity reported (no extra confirmation, but also no red flags).

Technical Analysis

Trend/structure: Moving averages are converging, indicating consolidation rather than a strong ongoing trend.
Momentum: MACD histogram is positive (0.142) but contracting, suggesting bullish momentum is fading/pausing rather than accelerating.
RSI(6): ~48.65 (neutral), consistent with a balanced/sideways tape and a reasonable entry (not overbought).
Key levels:
- Pivot/support: ~48.398 (price is essentially on it now)
- Support: 45.544 (S1), then 43.782 (S2)
- Resistance: 51.252 (R1), then 53.014 (R2)
Pattern-based odds (from similar candlesticks): modestly negative next week (-1.53%) but positive 1-month expectancy (+1.93%)—fits a “buy support for a move back toward resistance” setup.

Positive Catalysts

- Recognition as one of Singapore's Fastest-Growing Companies for 2026 reinforces growth narrative and brand credibility.
- Cartrack’s scale (millions of connected vehicles across 20+ countries) supports durability and continued expansion.
- Ongoing product value proposition (operational intelligence/actionable insights) strengthens retention and cross-sell potential.
- Analyst remains Buy and explicitly views investment spending as supportive of longer-term growth.

Neutral/Negative Catalysts

- Margin pressure: gross margin slightly down YoY, tied to investments in sales/distribution (could cap near-term multiple expansion).
- Technical momentum is not accelerating (MACD positive but contracting), so upside may be choppier and resistance at ~51.25 could be a near-term ceiling.
- No notable supportive flow signals from hedge funds/insiders recently (neutral positioning).

Financial Performance

Latest reported quarter: 2026/Q3.
Revenue: 1,409,830,000 (+21.60% YoY) — strong top-line growth.
Net income: 264,109,000 (+11.31% YoY) — profits growing, though slower than revenue (consistent with investment phase).
EPS: 8.55 (+11.33% YoY) — solid earnings growth.
Gross margin: 69.43% (-0.37% YoY) — minor compression, but still very high margin profile overall.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Latest update (2026-01-23): Freedom Capital kept a Buy rating; price target trimmed slightly to $61 from $63.
Analyst rationale: strong fiscal Q3 metrics, with margin pressure attributed to growth investments; expects these investments to support longer-term growth.
Wall Street-style pros: strong revenue growth, scalable platform, global footprint, high gross margin profile, target implies sizable upside vs ~$48.
Wall Street-style cons: near-term margin/investment headwinds and a slightly cautious target reduction (though rating remains Buy).

4 Analyst Rating

Wall Street analysts forecast KARO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KARO is 58.33 USD with a low forecast of 55 USD and a high forecast of 60 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

0 Hold

0 Sell

Strong Buy

Current: 47.920

Low

Averages

58.33

High

Current: 47.920

Low

Averages

58.33

High

Freedom Capital

Sergey Glinyanov

Buy

downgrade

$63 -> $61

AI Analysis

2026-01-23

Reason

Freedom Capital

Sergey Glinyanov

Price Target

$63 -> $61

AI Analysis

2026-01-23

downgrade

Buy

Reason

Freedom Capital analyst Sergey Glinyanov lowered the firm's price target on Karooooo to $61 from $63 and keeps a Buy rating on the shares. The company reported reported a strong fiscal Q3 metrics despite some margin pressure due to investments in sales and distribution, the analyst tells investors in a research note. The firm sees the investments supporting Karooooo's longer term growth.

UBS

Taylor McGinnis

Buy

initiated

$60

2025-08-29

Reason

UBS

Taylor McGinnis

Price Target

$60

2025-08-29

initiated

Buy

Reason

UBS analyst Taylor McGinnis initiated coverage of Karooooo with a Buy rating and $60 price target. Karooooo is a telematics, fleet management and delivery-as-a-service company trading at a 45% discount to peers, the analyst tells investors in a research note. The firm sees the company's above-average high-teens growth rate creating an attractive risk/reward, particularly for emerging market investors. Karooooo is well positioned to sustain high-teens growth as it targets underserved markets and scales sales, contends UBS.

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KARO Should I Buy

KARO Should I Buy

Should You Buy Karooooo Ltd (KARO) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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