Wedbush analyst Michael Pachter raised his price target on Amazon.com shares to $1,250 from $900 ahead of the company’s earnings report, telling investors that he expects the company to report Q1 revenue at or above the high end of guidance and for it to show continued gross margin expansion, driven by Fulfillment by Amazon.

The analyst, who said Amazon “appears intent upon growing annual profits” while still investing, keeps an Outperform rating on the stock.