Karooooo Ltd. (KARO) surged 8% during Wednesday's trading session, driven by robust third-quarter earnings and an upward revision of its fiscal 2026 revenue guidance. The Singapore-based digital operations firm reported an 11% year-over-year increase in adjusted EPS, alongside a 20% rise in subscription revenue fueled by a 16% growth in Cartrack subscribers.

The company's performance was further bolstered by its raised midpoint for FY26 revenue, signaling accelerating growth. Analysts note that Karooooo's consistent execution and cash-generative business model have reinforced its investment narrative, with Wall Street maintaining a median 12-month price target of $60.00—a 34% premium to its recent closing price.

Market sentiment remains positive, as reflected in the stock's current P/E of 20, down from 26 three months ago, suggesting improved valuation attractiveness amid earnings expansion.