UBS Starts Topgolf Callaway Brands (MODG) at Neutral

UBS analyst Arpine Kocharyan initiates coverage on Topgolf Callaway Brands (NYSE: MODG) with a Neutral rating and a price target of $10.00.

The analyst comments: "We see a less clear path for the golf business to grow next year, while same-store growth for Topgolf remains challenging. While separating the two businesses could result in a cleaner story for each, given Topgolf’s same-venue store sale declines have been an overhang relative to the core golf business that has delivered more resilient growth post Covid, we believe dis-synergies and more subdued growth profile for the golf business might limit multiple upside. We rate shares Neutral with PT of $10 based on 7-8x EV/EBITDA (or ~6-7x Topgolf and 10-12x core business, incl. dis-synergies of $30M.)"

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 $9.24 yesterday.

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