Topgolf Callaway upgraded to Buy from Hold at Jefferies

Jefferies analyst Randal Konik upgraded Topgolf Callaway (MODG) to Buy from Hold with a price target of $13, up from $11. The firm’s sum-of-the-parts analysis reveals the shares are pricing Callaway at a discount to Acushnet Holdings (GOLF), despite faster three-year growth, and ascribing no value to Topgolf. While Topgolf fundamentals are “weak,” and the company has suffered mis-execution, the shares appear oversold, the analyst tells investors in a research note. Jefferies says that with a separation ahead, and its sum-of-the-parts analysis two-times the current share price, Topgolf Callaway “offers strong value.” History shows a “deep understanding” of golf equipment, and the tailwinds in golf “are robust,” the firm contends.