Sachin Mittal, an analyst from DBS, maintained the Buy rating on Karooooo (KARO – Research Report). The associated price target is $52.00.
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Sachin Mittal has given his Buy rating due to a combination of factors that highlight Karooooo’s strong growth potential and strategic positioning. The company’s adjusted EBITDA for the third quarter of 2025 surpassed market expectations, indicating robust financial health. Additionally, Karooooo is poised for significant revenue growth in its logistics segment, with projections of a compound annual growth rate exceeding 25% over the next four years.
Furthermore, Karooooo’s expansion in Southeast Asia is expected to be a major growth driver, capitalizing on the region’s large addressable market. The company’s subscriber base is also anticipated to grow substantially, with a projected increase of 17% to 22% year-over-year. Despite some concerns about the national power grid, Karooooo’s earnings growth and strategic partnerships in Europe contribute to a positive outlook, supporting the Buy rating with a target price of USD 52.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $43.00 price target.