** 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))