Paccar selloff on truck recall an overreaction, says Citi

Citi views the selloff in shares of Paccar (PCAR) the company issued a recall of 221,000 vehicles over electronic system issues as an overreaction. The firm sees the recall having minimal impact to Paccar, as it is a software, not a hardware issue. The trucks need to be taken into dealers for a software update free of charge, and the software supplier, Knorr, is likely to eat the cost of the software update, the analyst tells investors in a research note. Citi keeps a Neutral rating on Paccar shares with a $125 price target The stock in afternoon trading is down 2% to $113.51.