- Roth Capital confirmed its “Buy” rating for Karooooo (NASDAQ:KARO), increasing its price target to $68.00.
- The global software-as-a-service (SaaS) company demonstrated strong revenue growth, with Cartrack’s subscription revenue accelerating by 19% and quarterly revenues reaching $88.48 million.
- Despite robust Annual Recurring Revenue (ARR) and adjusted free cash flow growth, Karooooo reported quarterly earnings of $0.44 per share, missing estimates, and anticipates near-term gross margin pressure.
Karooooo is a global software-as-a-service (SaaS) company. It provides a mobility platform and fully owns Cartrack, a vehicle telematics provider. The company also holds an 81% stake in Karooooo Logistics, focusing on data analytics and business intelligence for transportation.
On May 14, 2026, analyst firm Roth Capital confirmed its “Buy” rating for Karooooo. The firm also increased its price target for the stock to $68.00, up from the previous target of $62.00. At the time of the rating, the stock’s price was $43.56.
This positive outlook is supported by the company’s strong revenue growth. As highlighted by Business Wire, Cartrack’s subscription revenue growth accelerated to 19% in fiscal 2026. Karooooo also posted quarterly revenues of $88.48 million, beating analyst estimates by 1.59%, as reported by Zacks.
The company’s financial health is also shown by its Annual Recurring Revenue (ARR), which grew 18% to ZAR 5.18 billion. ARR represents the predictable revenue a company expects to receive from its subscribers. Additionally, adjusted free cash flow, the cash generated from operations, increased by 90% to ZAR 809 million.
Despite strong revenue, Karooooo reported quarterly earnings of $0.44 per share, missing the Zacks Consensus Estimate of $0.51. The company also expects near-term pressure on its gross margins. This is due to foreign exchange rates and higher costs for its devices.
