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
Get Alerts ELY Hot Sheet
Price: $11.41 -0.17%

Rating Summary:
    10 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 22 | Down: 32 | New: 34
Trade ELY Now!
Join SI Premium – FREE
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.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

New Coverage

Related Entities

D.A. Davidson

Add Your Comment