BofA Securities analyst Alexander Perry maintains $Topgolf Callaway Brands (MODG.US)$ with a hold rating, and adjusts the target price from $12 to $10.
According to TipRanks data, the analyst has a success rate of 35.1% and a total average return of -2.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Topgolf Callaway Brands (MODG.US)$'s main analysts recently are as follows:
Subsequent to the third-quarter report, there was a revision in the fourth-quarter adjusted EBITDA expectations. This was influenced by a revised forecast for Topgolf's same-venue sales as well as a decrease in the anticipated golf equipment revenue. However, the impact of this reduced revenue forecast is somewhat mitigated by an improvement in the product gross margins within the golf equipment segment for the fourth quarter.
The company's third-quarter revenue and adjusted EBITDA surpassed estimates, yet management has revised its guidance downwards. This revision is attributed to the rescheduling of shipments between the third and fourth quarters, coupled with a slower than anticipated consumer activity during the third quarter. Additionally, same-venue sales for Topgolf witnessed a sequential deceleration in the third quarter on both a one and two-year stack, predominantly due to performance in the 3+ Bay segment, with the 1-2 Bay segment also experiencing a sequential slowdown.
The firm views the deterioration in Topgolf builds as a forward concern following a 'mixed' Q3 report.
Note:
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