Goldman Sachs has increased its price objective on Inter Parfums (NASDAQ:IPAR) to $110.00 from $107.00 while maintaining a Buy rating, citing recent quarterly sales strength and margin resilience as foundations for the change. At the time of Goldman Sachs' note, shares were trading around $96.73 and InvestingPro data flagged the stock as trading below its Fair Value, with the company receiving an overall financial health score labeled as "GREAT."
The investment bank pointed to Inter Parfums' robust fiscal performance, including an expectation that the company will report diluted earnings per share of $5.13 for fiscal 2025, a figure that Goldman says is consistent with company guidance. Gross profit margins have been a material contributor to earnings performance, with a trailing twelve-month gross margin of 56.21% that supports healthy profitability metrics.
Looking beyond fiscal 2025, Goldman Sachs' analysts believe favorable foreign exchange dynamics could prompt management to raise its FY26 diluted EPS guidance. Management's current FY26 outlook is $4.85 per share, while Goldman models $5.05 and notes that the Bloomberg consensus stands at $4.96. The bank models a modest organic sales increase of 2.8% for FY26 and expects acceleration in FY27 driven by upcoming high-profile product launches and the rollout of Longchamp, which will be managed by Interparfums SA.
Those forward-looking projections sit on a base of steady historical growth: Inter Parfums reported revenue growth of 3.12% over the past year and a compound annual growth rate in revenue of 15% across the previous five-year span. On valuation, Goldman Sachs judges the name to be attractively priced relative to historical norms, noting the shares trade at roughly 19 times calendar-year 2026 estimated earnings versus a 23 times average observed from 2000 through 2019. Goldman’s revised price target implies about 14% upside from prevailing share levels.
InvestingPro data also highlights shareholder returns through dividends: the company has increased its dividend for five consecutive years and yields approximately 3.31% at current levels.
Market responses to Inter Parfums’ recent results and guidance have been mixed. The company reported preliminary fourth-quarter sales of $386 million, a 7% year-over-year increase that outpaced prior estimates from both Canaccord Genuity and broader Wall Street forecasts. Following those results, Canaccord Genuity reiterated its Buy rating and set a $123.00 price target.
Not all broker reactions were positive. BWS Financial moved to downgrade Inter Parfums from Buy to Hold and placed a $85.00 price target on the shares. BWS cited a weak outlook extending into 2026, pointing to management’s initial guidance that suggested only a 1% sales increase and an expected decline in earnings per share. By contrast, Berenberg initiated coverage with a Buy rating and a $103.00 target, highlighting the firm’s view of Inter Parfums’ focused business model and competitive positioning in the fragrance sector.
Inter Parfums’ most recent quarterly earnings release provides a mixed picture of near-term operating performance. In the third quarter of fiscal 2025 the company posted earnings per share of $2.05, beating the consensus forecast of $1.97, while revenue for that quarter came in slightly below projections at $430 million. These outcomes underpin the divergent analyst views and underscore the variable nature of sales and margin drivers quarter to quarter.
Collectively, the analyst actions and reported results paint a nuanced picture: Goldman Sachs’ upgrade to a $110 price target emphasizes margin strength, potential currency benefits and product-driven growth beyond FY26, while other brokers have taken more cautious stances based on management guidance and near-term revenue trajectories.
Outlook
Goldman Sachs’ updated target and modeling suggest upside relative to current market prices if currency movements and new product introductions play out favorably. At the same time, differing analyst assessments and guidance that implies only modest near-term revenue growth highlight uncertainty in the path to FY27 re-acceleration.
Key points
- Goldman Sachs raises Inter Parfums price target to $110 from $107 and maintains Buy; shares near $96.73 and flagged as undervalued versus Fair Value.
- Firm expects FY25 diluted EPS of $5.13 and sees potential for FY26 guidance to be upgraded toward a $5.05 estimate, aided by favorable foreign exchange dynamics; gross margins are strong at 56.21% LTM.
- Analyst reactions are mixed after preliminary Q4 sales of $386 million (up 7% year over year): Canaccord reiterates Buy at $123 PT, BWS downgrades to Hold at $85 PT, and Berenberg initiates Buy at $103 PT.
Sectors impacted: Consumer discretionary - beauty and fragrance; equity markets - valuation and brokerage coverage.
Risks and uncertainties
- Management’s initial FY26 guidance implies only a 1% sales increase and a potential decline in EPS according to BWS; this highlights the risk of weaker near-term top-line and earnings performance for Inter Parfums and the fragrance market.
- Disparate analyst forecasts and divergent price targets illustrate uncertainty in investor expectations and could increase volatility in the stock as brokers update views; this affects capital markets and investor sentiment.
- Goldman’s potential upside case depends in part on favorable foreign exchange movements; if currency dynamics do not materialize as expected, earnings upgrades for FY26 may not occur.
Conclusion
Goldman Sachs’ price target increase to $110 underscores confidence in Inter Parfums’ margin profile and the potential for currency and product catalysts to lift earnings. However, mixed analyst responses and management’s modest near-term guidance present clear uncertainties that investors and market participants will be watching closely as fiscal 2026 guidance and actual performance emerge.