Acushnet downgraded yesterday at Compass Point after USGA proposal

As previously reported yesterday, Compass Point analyst Casey Alexander downgraded Acushnet Holdings (GOLF) to Neutral from Buy with a price target of $55, down from $65, after the USGA proposed a Model Local Rule that gives competition organizers the option to require use of golf balls that are tested under modified launch conditions. While noting the call is "more about perception than any near-term reality" since the rule, if implemented, would take effect in 2026, the firm said golf balls are 30% of Acushnet’s revenues and they have a dominant market share, based largely upon ball usage by professional golfers, and "anything that potentially threatens that franchise would certainly impact the multiple" at which the shares trade. The firm adds that the number two market share golf ball company, Topgolf Callaway Brands (MODG), where golf balls are only 8% of total sales, "may be looking at today’s events as an opportunity."