Stellantis Price Target Cut to €7.20; Recalls 2.3M Vehicles, Lawsuit
STLA•Citigroup cut Stellantis’ price target to €7.20 from €7.50 after global safety recalls affected 2.3 million vehicles, including 1.08M U.S. models with power steering fire risk. The automaker also faces a securities lawsuit for investors who bought stock between Feb. 26, 2025 and Feb. 5, 2026.
1. Price Target Reduction
Citigroup maintained its Neutral rating on Stellantis while cutting the one-year price target to €7.20 from €7.50, citing mounting operational challenges. The revision reflects concerns over potential profit impact from large-scale recalls and legal expenses.
2. Vehicle Recall Details
Stellantis is recalling 1,076,999 vehicles in the U.S. due to a power steering defect that poses a fire risk, and an additional 1.3 million Jeep SUVs and trucks globally for similar fire concerns. Owners are advised to park affected vehicles away from structures until repairs are issued.
3. Securities Class Action
A securities class action lawsuit targets investors who purchased Stellantis common stock between February 26, 2025 and February 5, 2026. The suit alleges the company withheld material information about safety defects and recall costs, potentially exposing Stellantis to substantial legal settlements.
