UBS Initiates Buy Coverage on Karooooo with PT of $60.

UBS Initiates Buy Coverage on Karooooo with PT of $60.

UBS has initiated coverage of 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 noted that Karooooo is well-positioned to sustain high-teens growth by strategically targeting underserved markets, scaling sales, capitalizing on early cross-sell opportunities, and benefiting from regulatory, safety, and security initiatives. The company, 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.

Seeking Alpha's Quant Ratings, Seeking Alpha analysts, and Wall Street analysts are bullish about the company, rating it as a Buy. UBS's optimistic outlook on Karooooo is driven by the company's 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/