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DA Davidson Starts Callaway Golf (ELY) at Neutral; Turnaround Strategy Looks Promising; Execution Will Be the Next Test

September 27, 2011 10:57 AM EDT Send to a Friend
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Price: $7.61 +0.93%

Rating Summary:
    4 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 4 | New: 7
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DA Davidson initiates coverage on Callaway Golf (NYSE: ELY) with a Neutral. PT $6.00.

DA analyst says, "Outspent by the competition and weighed down by an over-sized expense structure, Callaway struggled during the economic downturn and subsequent recovery. With a new plan of action and streamlined cost structure in place, 2012 is a potential turnaround year. We see improvement in 2012, but expect it will be a long road ahead to a full recovery."

"We are introducing estimates for 3Q11 revenue and EPS of $170 million and $(0.22). Our 2011 and 2012 estimates are $912 million and $(0.40) and $968 million and $0.08, respectively."

For more ratings news on Callaway Golf click here and for the rating history of Callaway Golf click here.

Shares of Callaway Golf closed at $5.37 yesterday.




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