Alexander Perry, an analyst from Bank of America Securities, reiterated the Hold rating on Topgolf Callaway Brands (MODG – Research Report). The associated price target remains the same with $9.00.
Alexander Perry’s rating is based on a combination of factors that reflect both positive and challenging aspects for Topgolf Callaway Brands. The company reported stronger-than-expected fourth-quarter results, primarily due to improved traffic and corporate event bookings at Topgolf locations, as well as robust performance in the Golf Equipment segment, particularly in putters. However, Perry maintains a Hold rating due to anticipated pressures in the first quarter, including a decline in same venue sales attributed to adverse weather conditions and market competition.
Looking forward, Perry has adjusted the 2025 earnings forecast downward, considering factors such as foreign exchange impacts, increased incentive compensation, and tariff costs. Additionally, the potential spin-off or sale of Topgolf in the second half of 2025 adds an element of uncertainty. Despite these challenges, the company’s valuation remains attractive, with a price objective set at $9.00, reflecting a balanced view of the company’s prospects.