Topgolf Callaway Brands (MODG) PT Lowered to $10 at TD Cowen

TD Cowen analyst John Kernan lowered the price target on Topgolf Callaway Brands (NYSE: MODG) to $10.00 (from $13.00) while maintaining a Hold rating.

The analyst commented: "Our Sum of The Parts has a wide range of outcomes. Topgolf return on capital is low relative to high Capex and Landlord financing requirements. Topgolf's EBIT is improving on a segment level, but the total company's Operating Expenses as a % of sales are up 400bps in two years and will pressure EPS, and EBITDA into FY25. Target to $10, 65x FY2 P/E. ROIC of 5% is a headwind to valuation multiples."

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