Karo0000 Ltd: Growth Re-acceleration Drives Upside

研报英文原文证据摘录

Karo0000 Ltd: Growth Re-acceleration Drives Upside

Global Research

17 July 2026ab

Karooooo Ltd Equities

United StatesGrowth Re-acceleration Drives Upside

Software

12-month rating Buy

1QF27 Earnings Summary

1QF27 exceeded expectations, highlighted by the acceleration in Cartrack SaaS ARR to 12m price target US$80.00

22% C/C (from 21% C/C in 4QF26) and Cartrack subs revs to 21% C/C (from 19% C/C Prior : US$55.00

in 4QF26). The outperformance was primarily driven by South Africa, where KARO

Price (16 Jul 2026) US$65.16

reported a record level of net subscriber additions alongside stronger ARPU growth,

which it attributed to Tag and Video solutions cross-sales, as well as ongoing RIC: KARO.O BBG: KARO US

improvements in sales execution and efficiency. While KARO reiterated its FY27

Trading data and key metrics

guidance, we believe the strong start to the year supports higher forecasts. Accordingly,

52-wk range US$65.16-41.60

we raise our FY27 Cartrack subscription revenue growth estimate to 19.4% Y/Y (from

19.0%), and total revenue growth to 20.6% Y/Y (from 19.6%). At 4.8x CY26E EV/S and Market cap. US$2.02b

32x EV/FCF, we still view KARO's shares as attractive, particularly for emerging markets Shares o/s 31.0m (COM)

investors, as it has above average high-teens/low 20s growth with solid margin support Free float 26%

and healthy end market spend. We reiterate our Buy rating and raise our PT to $80 from Avg. daily volume ('000) 112

$55 on a higher EV/S multiple (see below). Avg. daily value (m) US$5.7

Common s/h equity (02/27E) R3.81b

Our Key Takes P/BV (02/27E) 8.7x

Cartrack Tag Driving Strong Customer Acquisition: Tag accounted for ~5% of Net debt to EBITDA (02/27E) NM

1Q sales, and while KARO is not disclosing its contribution to the 114K net new