Montblanc License Acquisition Accretive To IPAR Annual EPS
Analysts at Caris & Company reiterate their “buy” rating on Inter Parfums, Inc (NASDAQ: IPAR), while raising their estimates for the company. The target price for IPAR has been raised from $16 to $18.
Inter Parfums has signed a 10.5 year license agreement with Montblanc to create, produce and distribute perfumes and ancillary products. The agreement takes effect from July 1, 2010. IPAR has paid an upfront fee of $1.4 million and will be purchasing the inventory, which is anticipated at approximately $5.7 million. The analysts say, “This deal increases IPAR’s annual sales base by about 8% and we estimate it is immediately accretive to annual EPS by $0.10 or 13%. IPAR sees significant expansion potential for Montblanc, and believes it can become one of the biggest lines in its portfolio.”
Caris & Company has raised its EPS estimates for 2010 and 2011 by $0.05 to $0.83 and by $0.11 to $0.98, respectively.
