Analyst upgrades:

• Oppenheimer upgraded Inter Parfums (NASDAQ: IPAR) to Outperform from Perform on valuation and increased comfort with the company's outlook after meeting with management.
  
• Deutsche Bank raised Covidien (NYSE: COV) to Buy from Hold on the company's solid execution and ongoing restructuring, which they believe will drive EPS higher. The firm raised its target to $63 from $51.
• Regions Financial (NYSE: RF) was upgraded to Outperform from Market Perform at Keefe Bruyette.
• American Eagle (NYSE: AEO) was lifted to Buy from Neutral at Banc of America.
  
• Goldman raised Healthways (NASDAQ: HWAY) to Neutral from Sell.

Analyst downgrades:

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• AAR Corp. (NYSE: AIR) posted record third-quarter earnings and revenue.
• Adobe Systems Inc. (NASDAQ: ADBE) posted better-than-estimated first-quarter results and raised its outlook.
• CKE Restaurants Inc. (NYSE: CKR) posted third-quarter results that missed estimates.
• ConAgra Foods Inc. (NYSE: CAG) third-quarter profit surged as strong sales offset commodity prices.
• Darden Restaurants Inc. (NYSE: DRI) beat third-quarter expectations and offered guidance.
• FactSet Research Systems Inc. (NYSE: FDS) second-quarter results beat estimates and it raised its outlook.
• Fortress Investment Group (NYSE: FIG) remained upbeat despite a fourth-quarter loss.
• Guess Inc. (NYSE: GES) record fourth-quarter results beat Wall Street expectations.
• Inter Parfums Inc. (NASDAQ: IPAR) posted better-than-estimated fourth-quarter results and raised its outlook.
• Jabil Circuit Inc. (NYSE: JBL) beat second-quarter expectations but lowered its guidance.
• JC Penney Co. Inc. (NYSE: JCP) lowered its first-quarter outlook on weaker-than-expected sales.
• KB Home (NYSE: KBH) swung to a larger-than-expected first-quarter loss on write-downs.
• Lennar Corp. (NYSE: LEN) posted a smaller-than-expected first-quarter loss.
• Monsanto Co. (NYSE: MON) raised its second-quarter and full-year guidance.
• Oracle Corp. (NASDAQ: ORCL) merely met earnings expectations, sending shares lower.
• Tiffany & Co. (NYSE: TIF) posted better-than-estimated fourth-quarter results and raised its outlook.
• Usana Health Sciences Inc. (NASDAQ: USNA) posted lower-than-expected first-quarter results.
• Walgreen Co. (NYSE: WAG) posted solid second-quarter results, including same-store sales growth.

Also, auction-rate securities issues may hurt some tech company results. Analysts keep cutting earings estimates for the big banks, but some are eyeing Yum! Brands (NYSE: YUM) earnings prospects as it expands in China, as well as Archer Daniels Midland (NYSE: ADM) on soaring demand for commodities.

Upcoming results to watch for include Best Buy (NYSE: BBY), Monsanto (NYSE: MON), and Research in Motion (NASDAQ: RIMM).

Visit AOL Money & Finance for more earnings coverage.

Inter Parfums (NASDAQ: IPAR) develops, manufactures and distributes prestige perfumes and cosmetics, as the exclusive worldwide licensee for such names as Burberry, Paul Smith, S.T. Dupont, Christian Lacroix, Quiksilver/Roxy and Van Cleef & Arpels. The firm owns owns Lanvin Perfumes and Nickel S.A. It also designs and manufactures personal care products under exclusive agreements with the Gap (NYSE: GPS), New York & Company (NYSE: NWY) and Brooks Brothers. Further, it makes fragrances, cosmetics and personal care products for the mass market. The latter lines are offered by such merchandisers as Wal-Mart Stores (NYSE: WMT). Inter Parfums products are sold in over 120 countries.

The firm surprised the Street last week, when it reported Q4 EPS of 41 cents and revenues of $119.4 million. Analysts had been looking for 34 cents and $119.2 million. Management also guided FY08 EPS to about $1.25 ($1.14 consensus) and FY08 revenues to about $442 million ($439.31M consensus).

Most folks are familiar with the practice of associating perfumes with designer fashions and celebrities. Usually, however, they don't have any idea who actually makes the stuff. Quite often, it's an outfit headquartered in New York.

Inter Parfums (NASDAQ: IPAR) develops, manufactures and distributes prestige perfumes and cosmetics, as the exclusive worldwide licensee for such names as Burberry, Lanvin, Paul Smith, S.T. Dupont, Christian Lacroix, Quiksilver/Roxy and Van Cleef & Arpels. The firm also designs and manufactures personal care products under exclusive agreements with the Gap (NYSE: GPS) and New York & Company (NYSE: NWY) and makes fragrances, cosmetics and personal care products for the mass market. The latter lines are offered by such merchandisers as Wal-Mart Stores (NYSE: WMT). Inter Parfums products are sold in over 120 countries.

The firm surprised the Street last week, when it reported Q1 EPS of 28 cents and revenues of $85.1 million. Analysts had been looking for 23 cents and $82.7 million. Management also guided FY07 EPS to $1.03 ($1.01 consensus) and FY07 revenues to $375 million ($369.75M consensus). Wedbush Morgan and Oppenheimer subsequently reiterated "buy" recommendations on the issue and boosted their price targets to $31. The news popped the shares out of a late April/early May "cup" into the mid-May "handle" of a Cup & Handle formation. The price is now beginning to show signs of completing the pattern with a bullish rise from the right-hand side of the "handle".

Altogether, brokers now recommend the shares with two "strong buys," two "buys" and one "hold." Analysts expect a 19% growth rate, through the next year. The IPAR Price to Sales ratio (1.72), Price to Book ratio (3.56), Sales Growth rate (20.03%), EPS Growth rate (27.27%), Return on Investment (15.70%) and Revenue per Employee ($1.34M) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 42% of the outstanding shares. Over the past 52 weeks, the stock has traded between $15.39 and $29.18. A stop-loss of $23.60 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

According to a piece in today's Wall Street Journal, the troubles in the subprime lending industry could spill over into retailers [subscription required] catering to the same low-income customers. The logic works like this: People who are struggling to pay their mortgages (as so many are, as evidenced by the troubles in the subprime industry) will have to cut back on their spending. Companies that could suffer include Wal-Mart Stores Inc. (NYSE: WMT), Sears Holdings Corp.'s (NASDAQ: SHLD) Kmart, and convenience stores, as well as other companies catering to lower income Americans such America's Car-Mart Inc. (NASDAQ: CRMT).

So what are some companies that investors could look to to avoid exposure to the subprime collapse and its repercussions? Basically, any company catering to an upscale clientele: Tiffany & Co. (NYSE: TIF), Coach Inc. (NYSE: COH), Inter Parfums Inc. (NASDAQ: IPAR), and similar stocks.

And, from that Wall Street Journal article, one of the best quotes I've seen in a long time:

"Having a credit card is kind of like being a millionaire," says Scott Davis, a 37-year-old facility maintenance worker who lives in Arlington, Texas. He says he and his wife, whose household income is $38,000 a year, had "seven or eight" credit cards they used to buy sporting goods, go on vacations and remodel their home.

Hmm...