D.A. Davidson analyst Linda Bolton Weiser reiterated a Buy rating on the shares of Inter Parfums Inc (NASDAQ:IPAR) with a price target of $187.

IPAR reported 2Q23 sales increase of 26% to $309 million, beating consensus of $282 million. The company raised its 2023 sales guidance to $1.3 billion (+20% Y/Y) from $1.25 billion (+15% Y/Y). 

According to the analyst, strength was driven by prestige fragrance market growth and share gains.

In 2Q23, U.S. division sales were +42% to $111 million, with strong performance across most key brands, said the analyst.

The analyst added that GUESS sales were +30% Y/Y, more than making up for the 1Q23 logjam the brand experienced related to ERP implementation.

The newest pillars in the GUESS franchise Seductive Blue and Uomo Acqua were key growth drivers. IPAR also called out the strong performance of Ferragamo and Oscar de la Renta.

The analyst mentioned that the European division sales were +19%, with broad-based strength across the brand portfolio.

The analyst has raised 3Q23 sales estimate to +25% Y/Y from +22% and 4Q23 sales estimate to +6% Y/Y from +3%. The FY23 EPS estimate is also raised by $0.10 to $4.35.

Price Action: IPAR shares are trading higher by 9.8% at $143.84 on the last check Tuesday.