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Goldman upgrades EV manufacturer Magna to buy, sees nearly 30% upside

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An employee assembles a rear bumper at the Magna International Inc. Polycon Industries auto parts manufacturing facility in Guelph, Ontario, Canada.
Cole Burston | Bloomberg | Getty Images

For investors who are unsure about which electric vehicles will take off, contract manufacturer Magna International could be a smart bet, according to Goldman Sachs.

Shares of the auto parts supplier and manufacturer have jumped 31% year to date, outperforming the broader market. The Ontario-based company builds individual parts and full cars for electric and traditional vehicle companies.

Analyst Mark Delaney upgraded the stock to buy from neutral, saying in a note to clients that Magna would be a key part of the supply chain as electric vehicle production expands.

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