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On Tuesday, DA Davidson reiterated its Buy rating on Inter Parfums (EPA:IPAR) stock (NASDAQ:IPAR) with a price target of $170.00. The firm’s stance remains unchanged despite a recent downturn in the company’s shares, which have seen a decline of approximately 15% over the last month, bringing the current stock price to $118.46. This drop is attributed to the company’s forecast for flat sales in the first quarter of 2025, with a slight increase of 3% when excluding foreign exchange impacts. The company has demonstrated solid growth with revenue increasing by 10.22% over the last twelve months. Additionally, the beauty retailer Douglas, which is traded on the German stock exchange under the ticker DOU-DE, has reported an accelerated slowdown in customer traffic and demand, particularly in France and Germany.
DA Davidson’s analysts had a meeting with Inter Parfums’ Chief Financial Officer to discuss the recent acquisition of the Goutal brand. They noted that the CFO’s demeanor was normal during the conversation. According to the analysts, Inter Parfums has a history of providing conservative guidance to accommodate market fluctuations. InvestingPro analysis reveals that the company maintains impressive gross profit margins of 55.74% and holds more cash than debt on its balance sheet, demonstrating strong financial management. Furthermore, the company’s growth is often propelled by its own initiatives rather than the broader fragrance market’s performance.
The $170 price target set by DA Davidson is derived from a 29-fold multiple of the firm’s estimated earnings per share (EPS) for the year 2026, which is projected to be $5.85. With a current P/E ratio of 23.08, InvestingPro analysis suggests the stock is slightly undervalued compared to its Fair Value. Inter Parfums’ strategic maneuvers, such as the Goutal deal, appear to be key factors in the company’s growth narrative as it navigates the current market conditions.
Inter Parfums, known for its manufacturing and distribution of various premium fragrances and beauty products, faces a challenging retail environment, as evidenced by the latest updates from Douglas. However, the company’s consistent strategy of cautious annual guidance suggests a long-term approach to dealing with market volatility. InvestingPro data shows the company maintains an excellent Financial Health Score of 3.12, labeled as "GREAT," with strong cash flows and dividend stability. Despite the recent challenges, DA Davidson’s analysis suggests confidence in Inter Parfums’ potential for growth and its ability to manage through the industry’s ups and downs. Discover 10+ additional exclusive insights and detailed financial analysis available in the comprehensive Pro Research Report.
In other recent news, Interparfums Inc. reported its fourth-quarter earnings for 2024, revealing a 10% increase in net sales, reaching $1.452 billion. Despite a slight miss on earnings per share (EPS) forecasts, which came in at $0.75 compared to the expected $0.80, the company slightly exceeded revenue expectations with $362 million against a forecast of $361.98 million. Additionally, Interparfums announced a 7% increase in its dividend to $3.20 per share. The company also completed the acquisition of Maison Goutal’s intellectual property rights, with plans to take over brand development in 2026.
Analysts have responded positively to these developments, with DA Davidson raising the price target for Interparfums to $170, maintaining a Buy rating, while Canaccord Genuity increased their target to $168, also maintaining a Buy rating. Piper Sandler followed suit, lifting the price target to $169 and keeping an Overweight rating, citing the company’s strong performance and future growth potential. These analysts highlighted the company’s robust growth, successful brand acquisitions, and strategic product launches as key factors in their optimistic outlooks. Interparfums’ management has expressed confidence in achieving their 2025 guidance, despite potential challenges in the prestige beauty industry and foreign exchange rates.
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