Analyst Alexander Perry from Bank of America Securities maintained a Hold rating on Topgolf Callaway Brands (MODG – Research Report) and keeping the price target at $9.00.
Alexander Perry has given his Hold rating due to a combination of factors impacting Topgolf Callaway Brands. One of the primary reasons is the anticipated pressure on Topgolf’s performance, as credit card data indicates a decline in same venue sales, suggesting a deceleration compared to the previous quarter. This decline is further supported by reduced foot traffic in the fourth quarter, and potential challenges in the first quarter of 2025 due to adverse weather conditions.
However, this weakness in Topgolf is somewhat mitigated by the robust performance of Callaway’s golf equipment segment. Sales data from Golf Datatech and the successful launch of new product lines in the golf clubs category have shown positive trends, which could help offset some of the challenges faced by Topgolf. Despite these mixed signals, Perry maintains a neutral stance, with the stock price objective set at $9.00, reflecting both the strengths and risks currently associated with the company.
