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KAROKarooooo Ltd.Hold6.5·$65.44
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 Franchise→Stable
  • Attractive Valuation↓Deteriorating
  • Earnings Beat Record↓Deteriorating
  • +1 more pillar — see the Why tab for full reasoning

Pillars as of Jul 3, 2026

Full reasoning →

Open full analysis

Karooooo Ltd. (KARO) Stock Analysis

Breakout setup

HoldVALUE-TRAP 1/5GrowthQualityModerate Confidence

Technology · Software - Application

Hold if already holding. Not a fresh buy at $65.44, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.9% away).

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

$65.44-2.0% A.UpsideScore 6.5/10#12 of 116 Software - Application
QualityF-score8 / 9FCF yield53.36%
IncomeYield2.32%(5y avg 2.79%)Payout73.00%
Stop $60.86Analyst target $64.12(reached)A.R:R -0.1:1
Analyst consensus$73.70+12.6%5 analysts
$65.44price
$73.70mean
$79

Hold if already holding. Not a fresh buy at $65.44, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.9% away). Chart setup: Golden cross, above all MAs, RSI 66, MACD bullish. Wide-moat business. Accumulate on weakness. | News modifier -1 (STRONG_BUY_WAIT → HOLD_IF_HOLDING) Score 6.5/10, moderate confidence.

Passes 6/8 gates (positive momentum, no SEC red flags, news events none recent, earnings proximity 82d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and clean insider activity. Suitability: aggressive.

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

Recent developments

updated 2026-10-29
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Jan 19, 202782d to earnings· next earnings call

Thesis

Rewards
V7 flight-to-quality bonus: +0.5 (Q=8.1 in RISK_OFF)
High-quality business
Positive momentum
Risks
Analyst target reached - limited upside remaining
Near 52-week high (4.9% away)
Sector modifier (Technology): -0.8

Key Metrics

P/E (TTM)31.6
P/E (Fwd)23.1
Mkt Cap$2.0B
EV/EBITDA1.2
Profit Mgn17.6%
ROE35.2%
Rev Growth22.0%
Beta0.89
Dividend2.32%
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. How we score · Editorial policy

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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.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.

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No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.

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

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

Bollinger
0.0
Support Resistance
0.5
52w Position
9.0
GatesA.R:R -0.1=NEGATIVEINSIDER 0.60%=HEAVYMomentum 7.9>=5.5No SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 82d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Aggressive
RSI
66 · Neutral
↑ 20D MA↑ 50D MA↑ 200D MAGOLDEN CROSSSupport $56.50Resistance $65.90

Price Targets

A.Upside-2.0%
A.R:R-0.1:1

Position Sizing

ConvictionNone
Suggested %0%
Max %0%
RegimeRisk-Off

Risk Alerts

! Target reached (-2.0% upside)
! News modifier -1: STRONG_BUY_WAIT → HOLD_IF_HOLDING
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2027-01-19 (82d)

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 $65.44, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.9% away). Chart setup: Golden cross, above all MAs, RSI 66, MACD bullish. Wide-moat business. Accumulate on weakness. | News modifier -1 (STRONG_BUY_WAIT → HOLD_IF_HOLDING) Analyst target $64.12 reached (−2.0%), stop $60.86 (−7.5%), A.R:R -0.1:1. Score 6.5/10, moderate confidence.

What is the KARO stock price target?

Analyst target $64.12 reached (−2.0% from $65.44); no take-profit level is published. Analyst target $64.12 reached (−2.0%), stop $60.86 (−7.5%), A.R:R -0.1:1. Stop-loss: $60.86.

What are the risks of investing in KARO?

Analyst target reached - limited upside remaining; Near 52-week high (4.9% away); Sector modifier (Technology): -0.8.

Is KARO overvalued or undervalued?

Karooooo Ltd. trades at a P/E of 31.6 (forward 23.1). TrendMatrix value score: 6.3/10. Verdict: Hold.

What do analysts say about KARO?

12 analysts cover KARO with a consensus score of 4.1/5. Average price target: $74.

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.

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