Callaway Golf (ELY) PT Raised to $40 at Jefferies On Underappreciation of Topgolf Merger

Jefferies analyst Randal Konik raised the price target on Callaway Golf (NYSE: ELY) to $40.00 (from $30.00) on the belief that there is plenty of room to run as the opportunity presented by the Topgolf merger remains underappreciated and that Toptracer Range will contribute more meaningfully to results over time.

The analyst reiterated a Buy rating, stating "US rounds played have continued to accelerate through the back half of '20, and we expect robust demand for the sport will continue for the foreseeable future as consumers' leisure time and spend face lessened competition. Recall, key to this strength in golf participation has been a surge in beginner play, of which the benefit to equipment sales likely extends over the medium-term as these new players invest in the game over time".

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