Volkswagen (VWAGY) is in the news after the automobile maker announced a recall affecting 177,493 of its SUVs. The issue has to do with the engine cover installed on these SUVs, which can become loose and touch hot parts of the engine. This increases the risk of the car catching fire, resulting in the need for a recall.
Vehicles affected by this recall include certain Atlas and Atlas Cross Sport makes with model years 2024 and 2025. Fortunately, the engine cover issue isn’t hard to remedy. Volkswagen only requires owners to bring their vehicles to a dealer, which will remove the engine cover for them at no cost.
This latest recall comes just a couple of days after another was announced for Volkswagen and Audi electric vehicles (EVs). An issue with more than 60,000 Audi Q4 e-Trons and Q4 Sportback e-Trons with 2022 and 2023 model years, and 2021 to 2023 23 Volkswagen ID.4s The issue here is the “N” gear symbol not showing up on the instrument panel, increasing the risk of a rollaway accident.
VWAGY Stock Movement Today
Volkswagen stock hasn’t seen much in the way of strong movement today despite its recent recalls. The easy nature of the fix doesn’t appear to have investors worried. While VWAGY stock dipped slightly in pre-market trading, it has recovered and is up 0.5% this morning.
Is Volkswagen Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Volkswagen (DE:VOW) is Moderate Buy based on four Buy, three Hold, and one Sell ratings over the last three months. With that comes an average price target of €106.63, a high of €125, and a low of €75. This represents a potential 4.2% downside for Volkswagen stock.
