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On Wednesday, Piper Sandler analyst Korinne Wolfmeyer increased the price target for Inter Parfums (NASDAQ: EPA:IPAR) shares to $169 from the previous $164, while keeping an Overweight rating on the stock. Wolfmeyer highlighted Inter Parfums as a top investment idea, citing its potential as a high-quality, small to mid-cap (smid-cap) company within the beauty sector. The stock, currently trading at $144.54, sits near its 52-week high of $154.39, with InvestingPro analysis indicating the company is slightly overvalued at current levels.
Inter Parfums reported double-digit growth in the fourth quarter and confirmed its guidance for 2025, which anticipates growth roughly on par with the overall market. The company’s impressive 9.2% revenue growth and robust 55.8% gross profit margin in the last twelve months underscore its strong market position. The company’s performance stands out as it has not reported the same level of discrepancies between sell-in and sell-through that other companies have noted, according to the analyst. InvestingPro data reveals 10+ additional performance metrics and insights available for subscribers.
The company has several product launches planned and is increasing its investments in advertising and promotion (A&P) while still managing to maintain its profit margins. Based on these factors, Piper Sandler views the company’s guidance as cautious but believes there is room for upward revisions should current positive trends continue.
In addition to the operational achievements, Inter Parfums has announced an increased dividend and maintains a strong cash position, which Piper Sandler suggests contributes to a more attractive total shareholder return (TSR). With these considerations, the firm maintains its Overweight rating and has adjusted its price target to $169 to reflect the positive outlook.
In other recent news, Inter Parfums Inc (NASDAQ:IPAR). reported its fourth-quarter earnings for 2024, showing a mixed performance. The company experienced a 10% increase in net sales, reaching $1.452 billion, while earnings per share (EPS) fell slightly short of forecasts at $0.75 compared to the expected $0.80. However, revenue slightly exceeded expectations at $362 million against a forecast of $361.98 million. The company also announced a 7% increase in its dividend to $3.20 per share. Inter Parfums has projected sales of $1.510 billion for 2025, indicating a 4% growth, with an anticipated EPS of $5.35 per share. The company plans key product launches, including a new Ferragamo fragrance and a Rochas brand line, to drive future growth. Despite challenges, Inter Parfums maintained its market leadership through strategic innovations and brand-building efforts. Additionally, the company is addressing potential risks such as supply chain disruptions and regulatory changes, which may require reformulation of a significant portion of their product formulas.
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