Karooooo, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Joshua Reilly from Needham maintained a Buy rating on the stock and has a $60.00 price target.
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Joshua Reilly has given his Buy rating due to a combination of factors including Karooooo’s impressive Q1 results, which showcased robust subscriber growth. The company reported a total subscriber increase of 16.5%, with South Africa contributing a notable 15.9% growth. Reilly sees Southeast Asia as a pivotal region for future subscriber expansion, bolstered by a significant year-to-date increase in sales growth hiring, which is expected to drive higher subscriber numbers in the latter half of FY26 and into FY27.
Despite some moderation in the cross-selling of Tag and Video products, which fell slightly short of previous expectations, Reilly remains optimistic about Karooooo’s potential. He anticipates a 4.5% year-over-year growth in annual recurring revenue per subscriber for FY26, which, although lower than earlier management projections of 6%, still supports a positive outlook for the company’s financial performance.