KeyBanc Upgrades Topgolf Callaway Brands (MODG) to Overweight

KeyBanc analyst Noah Zatzkin upgraded Topgolf Callaway Brands (NYSE: MODG) from Sector Weight to Overweight with a price target of $17.00.

The analyst comments: "View favorably in NT given valuation upside and enhanced focus on the core Callaway brand  Within golf, we prefer MODG given its relative valuation discount following the sale of a majority stake in Topgolf to Leonard Green & Partners. Looking ahead, we favor the enhanced focus on the core Callaway brand, along with a revamped balance sheet ($1B debt paydown, $680M in cash). We upgrade to OW and initiate a $17 PT, reflecting an improved balance sheet and valuation upside. Our $17 PT implies ~12.6x our FY26E adj. EBITDA (including Topgolf stub; estimated $440M value)."

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

Shares of Topgolf Callaway Brands closed at $14.68 yesterday.

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