What Happened?
Shares of fragrance and perfume company Inter Parfums (NASDAQ: IPAR) fell 3.8% in the morning session after an analyst at Oddo BHF lowered their price target on the stock. The financial services firm cut its target price on Inter Parfums shares to €34 from a previous target of €38, while maintaining its 'neutral' rating on the stock. The decision followed the release of the company's interim results, which, according to Oddo BHF, showed a business slowdown. This revised, more cautious outlook from the analyst appears to have created concern among investors, leading to the decline in the share price during the session.
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What Is The Market Telling Us
Inter Parfums’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 27 days ago when the stock dropped 3.1% on the news that markets pulled back amid hotter-than-expected inflation data. The main concern for investors was the July Producer Price Index (PPI), a measure of wholesale inflation. The higher-than-expected reading suggests that companies could face squeezed profit margins due to rising costs. This also reduces the likelihood of the Federal Reserve cutting interest rates, which could further dampen economic activity. Compounding these inflation fears are multiple reports signaling a weakening consumer.
Inter Parfums is down 13.5% since the beginning of the year, and at $111.29 per share, it is trading 23% below its 52-week high of $144.54 from February 2025. Investors who bought $1,000 worth of Inter Parfums’s shares 5 years ago would now be looking at an investment worth $2,716.
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