Callaway Golf (ELY) Reiterated Top Pick at Jefferies After Preannouncing Upside

Jefferies analyst Randal Konik reiterated a Buy rating and $49.00 price target on Callaway Golf (NYSE: ELY) after the company raised its Q3 forecast to $855 million from $783 million at the midpoint. Adjusted EBITDA is also expected to be higher at $108M vs $55 prior. The upside was driven by broad-based outperformance across business segments. Key positives include the recovery of the Topgolf events and Jack Wolfskin which have been significantly impacted by COVID.

The analyst stated "With this update, we see two key highlights that add confidence to our bullish stance; 1) Topgolf saw outperformance from both walk-in AND events (in spite of Delta variant) and 2) outperformance in Jack Wolfskin. Recall, Topgolf's events business has been significantly impacted by COVID, while walk-in has seen stronger recovery. Secondly, Jack Wolfskin recovering has the opportunity to alleviate a lingering EBITDA headwind."

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 $28.92 yesterday.

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