Inter Parfums Inc. (IPAR)

Headquartered in New York City, Inter Parfums is a worldwide marketer of prestige and mass-market perfumes and cosmetics, specializing in prestige fragrances with a focus on licensed designer brands. Prestige fragrances represent 89% of total sales.

Inter Parfums' growth strategy of acquiring exclusive worldwide licenses and developing new prestige fragrances under the brand names acquired from the licenses has resulted in a 19.5% five-year sales growth rate. Management has aggressively pursued additional license agreements, and has also entered the skin-care category.

Due to attractive valuation, the stock is now rated a Buy. Inter Parfums, Inc. has exhibited an above-average sales growth rate, but earnings growth has lagged sales growth due to the inherent risks associated with new products development that is dependent on renewable licensing agreements. The target price of $15.75 is based on an 18 P/E on 12-month trailing earnings.