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Magna outlined its vision for vehicle electrification and autonomous driving at its investor day.

Cole Burston/Bloomberg

Shares of Magna International got an upgrade from Morgan Stanley on the thinking that the electric-vehicle boom is good for auto suppliers, too.

The improved outlook from analyst Adam Jonas has Magna (ticker: MGA) on the move Wednesday. The stock was up about 1.7%, to $95.19 in afternoon trading. The S&P 500 was up 0.1%, and the Dow Jones Industrial Average added 0.6%.

Still, the ratings change isn’t a full endorsement of the stock. Jonas went from Sell to Hold, but his price target jumped from $61 a share to $96. EVs are the reason.

EV sales, as a percentage of the global total, are forecast to rise and sales of gasoline-powered autos are expected to drop. Before this week, Jonas didn’t have confidence that Magna could offset any drop in parts sold for internal- combustion vehicles with sales of parts destined for EVs.

Magna, however, outlined its vision for vehicle electrification as well as autonomous driving Tuesday at its investor day. The company believes its addressable market is growing as vehicles become more complex.

Jonas, as a result, raised his long-term sales growth assumptions to roughly 4% a year on average from just above 2%. The “strategy is helping investors change their perception of Magna,” wrote Jonas in his Tuesday night upgrade report. He now sees Magna as more than a parts seller—“a more elegantly organized technology and systems enabler.”

The investor day, as well as the upgrade, have Magna shares trading at a new 52-week high. Shares are up about 6% for the week, to just above $95, better than comparable moves of the S&P 500 and Dow Jones Industrial Average.

Late last summer, Barron’s wrote that Magna’s ability to design and assemble cars would be a benefit as the number of EV makers proliferated. Since that article appeared, the shares are up almost 100%, beating comparable returns of the overall market.

Write to Al Root at allen.root@dowjones.com