Konik reiterated a Buy rating on the company, while raising the price target from $14 to $16.
Callaway Golf reported its Q3 EPS at ($0.06), ahead of the consensus and the guidance, driven by better-than-anticipated revenue and operating expenses, partly mitigated by weaker gross margins.
“With the future monetization of its TopGolf stake as a catalyst, we view ELY shares as a key holding for small cap PMs,” Konik mentioned.
Management announced that the company saw significant growth in market share, with 22.7 percent year-to-date share of the hardgoods market, with 25.7 percent share of clubs and 13.7 percent share of balls.
Although the international market continues to be “choppy,” the analyst noted that increase in the ASP across several categories highlight the strength of the brand, while pointing to potential for future share gains.
In addition, the company announced the
Konik believes Ishii will be “valuable addition to an already strong R&D team at ELY.”
At last check, Callaway was up 12.36 percent at $11.09.
|Nov 2016||Compass Point||Upgrades||Neutral||Buy|
|Sep 2016||Compass Point||Initiates Coverage on||Neutral|
|Jun 2016||FBR Capital||Initiates Coverage on||Outperform|
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