In a report released today, Joshua Reilly from Needham maintained a Buy rating on Karooooo, with a price target of $60.00.
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Joshua Reilly has given his Buy rating due to a combination of factors that reflect Karooooo’s strong performance and strategic growth initiatives. The company reported a robust second quarter, highlighted by a healthy increase in subscriber numbers and a notable year-over-year rise in annual recurring revenue (ARR) per subscriber. This improvement is largely attributed to successful cross-selling efforts, particularly with the Cartrack Tag and Video products in the South African market.
Moreover, Karooooo’s continued investment in expanding sales in the Asia-Pacific region is seen as a positive indicator for future subscription growth, aligning with their ambitious four-year growth target. The demand for their services remains strong across different regions, and the management’s effective execution of strategies further supports the positive outlook. These elements combined suggest a promising trajectory for the company, justifying the Buy rating.
In another report released today, Raymond James also maintained a Buy rating on the stock with a $60.00 price target.