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
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(END) Dow Jones Newswires
January 02, 2025 13:31 ET (18:31 GMT)
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