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Tesla receives a $275 price target increase from the CFRA ahead of its Q1 deliveries report. The firm also raised its recommendation to Strong Buy, expecting Tesla vehicle deliveries to be closer to the consensus of 432,000.

The CFRA has upgraded Tesla's recommendation to Strong Buy from Buy and raised its share price target to $275 from $250 ahead of the giant's Q1 deliveries report, according to investing.com. The company will report the number of deliveries for Q1, probably this weekend, as it usually happens on the 1st or 2nd day of the new month.

The firm's analysts believe there are several indications that the number of Tesla vehicle deliveries is likely to be closer to the consensus of 432,000 units. In addition, after the reduction in prices for the manufacturer's cars in January, they really gave a huge boost to the growth in orders. CFRA expects Tesla had inventory at the start of the year that could lead to higher quarterly deliveries than expected.

Analysts wrote in a note, “We believe a few data points indicate that a beat relative to the consensus of 432K units is more likely than a miss. First was Musk's January 25 conference call comment that the company was seeing vehicle orders coming in at almost twice the rate of production following its price cut announcement earlier that month. With TSLA's quarterly production having exceeded deliveries in each of the last three quarters, we believe TSLA began the year with significant inventory, which could drive stronger-than-expected Q1 deliveries (its Q4 sales totaled 405,278 units). Additionally, we think TSLA's production likely benefited from easing chip shortages and supply chain issues and the ongoing ramp-up of the Austin and Berlin factories.”

CFRA raised their 2023 adjusted EPS estimate by $0.10 to $4.40 while leaving 2024 and 2025 estimates unchanged.

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