By Mackenzie Tatananni
Topgolf Callaway stock rose Thursday after Jeffries analysts raised their rating on shares of the golf equipment manufacturer and increased their price target, noting that the stock "appears oversold."
Shares of the golf equipment manufacturer climbed 13% to $8.88 after Jeffries analysts led by Randal Konik upgraded Callaway to Buy from Hold and increased their price target to $13 from $11.
The analysts noted that Topgolf, the Texas-based sports entertainment company Callaway acquired in 2021, "remains a problem," with an annualized total return of -34.1% versus the S&P 500's gain of 8.9% over the past three years.
However, this may be remedied soon, as the company prepares to spin off Topgolf into a stand-alone public company in the second half of 2025.
One potential growth catalyst is interest in golf itself, the analysts noted. In October, golf rounds nationwide saw their largest year-over-year increase since 2020, up 11.5%.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 02, 2025 13:31 ET (18:31 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。