Interparfums (IPAR) Offers “Substantial Growth Runway,” Berenberg Notes

Interparfums, Inc. (NASDAQ:IPAR) is included among the 11 Worst Performing Dividend Stocks Year-to-Date.

On November 21, Berenberg initiated its coverage on Interparfums, Inc. (NASDAQ:IPAR) with a Buy rating and $103 price target. The analyst noted that the company maintains a presence in just one beauty category, fragrance, which is just a “small” portion of a $43 billion market, providing “substantial growth runway.” Berenberg noted the company’s asset light business model, calling it “highly flexible” and has proven to be “disruptive.” The firm sees current share levels as an appealing entry point for investors.

In the third quarter of 2025, Interparfums, Inc. (NASDAQ:IPAR) saw growth in its luxury and prestige fragrance category; however, the company’s top-line growth remained stagnant because of retailer destocking, shifting consumer behavior, and tariff-related disruptions. The company retains confidence in its advertising and promotion programs, as well as portfolio evolution.

Interparfums, Inc. (NASDAQ:IPAR) reported revenue of $430 million in the third quarter of 2025, which showed a modest 1.8% growth from the same period last year. The company’s two biggest markets, North America and Western Europe, saw sales growth by 4% and 3%, respectively. The distribution challenges in South Korea and India persisted, which resulted in Asia/Pacific sales declining by 9%.

Interparfums, Inc. (NASDAQ:IPAR)’s cash position was also one of the positives for the company as it ended the quarter with $188 million in cash and cash equivalents and working capital of $688 million. Moreover, the company generated $68 million in operating cash flow in the first nine months of the year.

Interparfums, Inc. (NASDAQ:IPAR) is an American company that develops and distributes prestige fragrances as an exclusive worldwide licensee.

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