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

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.

More In Street Calls

CNBC ProHere are Friday's biggest analyst calls of the day: Tesla, Costco, GE, Plug Power, Facebook & more
CNBC ProJPMorgan predicts this under-the-radar streaming stock could rally more than 30%
CNBC ProUBS slashes FedEx earnings estimates, citing tight labor market, rising wages