Callaway Golf (ELY): 4 Reasons Upside Is Possible - DA Davidson

DA Davidson analyst, Andrew Burns, reiterated his Buy rating on shares of Callaway Golf (NYSE: ELY) noting that the company's product momentum, improving profitability, recent acquisitions and Topgolf investment will drive share price appreciation in the coming quarters. The analyst cited 4 reasons for expecting upside:

1) market share gains, recent acquisitions, and FX shifts provides meaningful opportunity to further improve earnings power

2) FX tailwind should emerge in 2018

3) Potential Topgolf IPO a catalyst for 2018

4) the August 21st deal closing and TravisMathew. acquisition guidance, The analyst is expecting $15M in revenue in 2017 and $0.01 adjusted EPS dilution

No change to the price target of $16.

For an analyst ratings summary and ratings history on Callaway Golf click here. For more ratings news on Callaway Golf click here.

Shares of Callaway Golf closed at $14.14 yesterday.

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