Callaway Golf (ELY) PT Raised to $30 at Jefferies; Topgolf Deal is a 1+1=3 Scenario

Jefferies analyst Randal Konik raised the price target on Callaway Golf (NYSE: ELY) to $30.00 (from $27.00) while maintaining a Buy rating, saying the Topgolf merger makes ELY at top pick. The firm sees upside to $40.

The analyst commented, "We see the merger as a clear 1 + 1 = 3 transaction. The Topgolf (TG) ecosystem is vast and early-stage growth while the Callaway brand is industry leading and the sport of golf is undergoing a renaissance. As a result, we see current ELY levels as a highly attractive entry point to an early inning growth story benefiting from secular tailwinds, and the formation of a truly unique asset with scarcity value. Reiterate Buy, raising PT to $30, upside PT to $40."

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