KARO Stock Analysis: Buy, Sell, or Hold?
KARO - Karooooo Ltd. Ordinary Shares
$50.08
0.03 (0.06%)
▲
5d:
-1.49%
30d:
+10.07%
90d:
+12.44%
BUY
MODERATE Confidence
Last Updated: February 2, 2026
Earnings: Jan 20, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: KARO shows positive signals but monitor for confirmation. Market pricing in 1.0% decline. Moderate conviction.
💡 BUY OPPORTUNITY: KARO shows positive signals but monitor for confirmation. Market pricing in 1.0% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$75.15
Based on 8.5% avg growth
INTRINSIC VALUE TODAY
$46.66
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 1.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: KARO is currently trading at $50.08, which is considered extended relative to its 30-day fair value range of $44.77 to $49.08. The stock's valuation (Forward PE: 1.3) is in line with its historical norms (1.3). Remarkably, the market is currently pricing in an annual earnings decline of 1.0% over the next few years. This pessimistic expectation contrasts with the company's recent 11.3% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, KARO is in a downtrend. Immediate support is located at $42.11, while resistance sits at $51.65.
Market Sentiment: KARO has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $61.54 (+22.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, KARO is in a downtrend. Immediate support is located at $42.11, while resistance sits at $51.65.
Market Sentiment: KARO has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $61.54 (+22.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$44.77 -
$49.08
Company Quality Score
58/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
61.9%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 22.9% below Wall St target ($61.54)
Fair Price Analysis
30-Day Fair Range
$44.77 -
$49.08
Current vs Fair Value
EXTENDED
Support & Resistance Levels
Support Level
$42.11
Resistance Level
$51.65
Current Trend
Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
1.30
Wall Street Target
$61.54
(+22.9%)
Revenue Growth (YoY)
21.6%
Earnings Growth (YoY)
11.3%
Profit Margin
19.5%
Valuation Discount vs History
-1.0% cheaper
PE vs Historical
1.3 vs 1.3
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.0%
(market-implied from PE analysis)
1-Year Target
$49.58
(-1%)
2-Year Target
$49.08
(-2%)
3-Year Target
$48.59
(-3%)
3-Yr Target (if PE normalizes)
(PE: 1→1)
$48.71
(-3%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 12.9%)
$1240.45
(+2377%)
Base:
(SPY PE: 1.3, Growth: 12.9%)
$72.14
(+44%)
Bear:
(PE: 1.1, Growth: 12.9%)
$61.32
(+22%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (24x PE), but valuation improves significantly next year (1x PE) as earnings recover.
Trailing PE: 23.83 | Current EPS (TTM): $2.10
Bull Case
$110.11
(+120%)
Analyst growth 100.0%, PE expands to 26.2
Base Case
$100.10
(+100%)
Market implied 100.0%, PE stable at 23.8
Bear Case
$34.03
(-32%)
Severe decline -20.0%, PE contracts to 20.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 1.3 to 1.3
Stabilization Target:
$50.20
(+0.2%)
PE Expansion Potential:
+0.2%
Last updated: February 03, 2026 1:32 AM ET
Data refreshes hourly during market hours. Next update: 2:32 AM
Data refreshes hourly during market hours. Next update: 2:32 AM
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Technical Signals Check
Is KARO showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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