UBS Initiates Bullish Coverage on Karooooo with $60 Price Target and 14% Upside Potential

UBS initiated coverage of Karooooo with a Buy rating and a $60 price target, implying a 14% upside. The brokerage firm models 19% YoY revenue growth in FY26, up from 15% YoY in FY25.

UBS has initiated coverage on Karooooo (NASDAQ: KARO) with a Buy rating and a price target of $60, implying a potential 14% upside. The brokerage firm projects 19% year-over-year (YoY) revenue growth in fiscal year 2026, up from 15% YoY in 2025 [1].

UBS analyst Taylor McGinnis highlighted Karooooo's strategic positioning in underserved markets, its ability to scale sales, capitalize on early cross-sell opportunities, and benefit from regulatory, safety, and security initiatives. These factors are expected to drive high-teens growth for the company.

Karooooo, a telematics, fleet management, and delivery-as-a-service provider, has seen its shares gain over 16% year-to-date, outperforming the broader S&P 500 Index's nearly 10.5% gain during the same period. The company's strong performance has garnered bullish ratings from various analysts, including Seeking Alpha's Quant Ratings and Wall Street analysts, who have also rated it as a Buy.

UBS's optimistic outlook on Karooooo is driven by its ability to capitalize on early-stage cross-sell opportunities and its strategic positioning in underserved markets. The brokerage firm's projections suggest a significant acceleration in revenue growth, which could translate into substantial shareholder value appreciation.

References:
[1] https://www.ainvest.com/news/ubs-initiates-bullish-coverage-karooooooo-60-price-target-14-upside-potential-2508/