Piper Sandler reiterated an Overweight rating on Tesla (NASDAQ:TSLA) with a 12-month price target on the stock ahead of the company’s 4Q delivery report early next week.

Analysts are expecting the electric automaker to report deliveries of 507k vehicles in the quarter, implying a full-year total of 1.83M units.

“After considering the latest intra-quarter data, we think our estimate appears doable.” Wrote analysts in a note.

However, even if Piper Sandler’s estimates prove overly optimistic, analysts still believe the company’s 4Q will ‘set a record’, with the annualized production rate exceeding 2M vehicles per year.

Piper Sandler also expects the company’s margins will rise compared to the 3Q, as pricing has somewhat stabilized, and fixed cost leverage has improved.

“We will re-assess our margin forecast once Q4 delivery results have been released.” Added Piper Sandler.

Shares of TSLA are up 0.77% in early trading on Tuesday.