** Topgolf Callaway Brands' MODG.N shares up 10.7% premarket to $8.70, highest since Nov 26, after Jefferies upgrades to 'buy' from 'hold'
** Jefferies boosts PT by $2 to $13, implying 65% upside to stock's last close
** Sum of the parts analysis shows MODG shares trading at discount to rival golf equipment maker Acushnet Holding GOLF.N, despite faster 3-yr growth, and ascribing no value to Topgolf, Jefferies writes in note
** While Topgolf fundamentals are "weak, and MODG has suffered misexecution, shares appear oversold," Jefferies says, adding that tailwinds in golf industry are "robust"
** In Sept, MODG said it would separate into two independent firms - Callaway and Topgolf - via a tax-free spin-off
** Now, of 14 analysts covering MODG, recommendation breakdown is 7 "strong buy" or "buy", 5 "hold" and 2 "sell" with $13 median PT, according to LSEG data
** In 2024, stock shed 45% for third straight year of losses. It fell 27% and 28% in 2023 and 2022, respectively
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.