Baird analyst Ben Kallo raised his price target for Tesla (TSLA) to $355 from $340 and reiterates an Outperform rating on the shares.

Consensus expectations "have overshot to the negative," creating a favorable share setup for the remainder of the year, Kallo tells investors in a research note.

The analyst sees "several catalysts" which could drive Tesla shares higher, beginning with the upcoming delivery release. Further, Kallo has noticed "bear arguments have preemptively shifted from demand to profitability."

A "solid" Q2 delivery announcement could set up a positive cash flow quarter and set the stage for share appreciation in the second half of 2019, contends the analyst.

He expects Tesla will release Q2 delivery numbers on or before Wednesday, July 3, and that the stock should react positively.