Citi raises EPS Estimate for Inter Parfums

In a report published by Citi yesterday they have increased their 2010 EPS estimate for Inter Parfums Inc. IPAR. IPAR has reported 3Q10 EPS of $0.28 (+0.14%) which according to Citi's update was six cents ahead of both their forecast and the consensus forecast. Citi has now increased their FY10 and FY11 estimates from $0.82 and $1.00 to $0.84 and $1.04. IPAR maintains a Hold rating and a Speculative risk. Citi writes, "We rate IPAR Speculative Risk, based primarily on its concentrated revenue base, with over half of its sales derived from the Burberry license. Clearly, to the extent the brand image of Burberry changes (which is largely outside the control of IPAR management), or to the extent that IPAR management fails to continue to support its Burberry products with adequate marketing investment and innovation, this business could decelerate sharply, causing a potentially adverse effect on IPAR's earnings." IPAR closed yesterday at $18.83.