Topgolf Callaway Brands (MODG) PT Raised to $9 at CFRA

CFRA analyst Zachary Warring raised the price target on Topgolf Callaway Brands (NYSE: MODG) to $9.00 (from $7.00) while maintaining a Hold rating.

The analyst comments "We raise our 12-month price target by $2 to $9, based on 10.8x our 2026 adjusted EBITDA estimate and slightly lower than the company's three-year average forward EV/EBITDA multiple of 11.1x, reflecting our view of troughing fundamentals and low expectations. We maintain our 2025 and 2026 EPS estimates of -$0.04 and $0.20 respectively. Shares of Topgolf Callaway Brands bounced back 50% in just over a month as investors await the spin-off of Topgolf and cheered the sale of Jack Wolfskin. We maintain our Hold rating on shares due to the uncertainty around the spin-off and what we consider to be a full valuation. The company's Golf Equipment business has significant manufacturing exposure to Asia, which in our opinion puts margins at risk due to the new tariff environment and is the main reason we are remaining neutral. Earnings expectations are muted and the valuation trades in a fair range."

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