Research Alert: CFRA Maintains Hold Rating On Shares Of Callaway Golf After Strong Start To 2026
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our 12-month target $2 to $17, 13.5x our 2026 adjusted EBITDA estimate, above CALY's three-year average forward EV/EBITDA view of 12.3x, reflecting a re-rating in shares after the sale of 60% of Topgolf. CALY's balance sheet and margin profile improved significantly post-sale, and management moved quickly to improve operating efficiencies for the remaining Golf Equipment and Apparel and Accessories businesses. In its Q1 call, management raised its full-year revenue and adjusted EBITDA guidance due to strong demand for CALY's new products and progress on its cost-saving initiatives. We now see shares trading in line with its largest peer Acushnet (GOLF), which trades ~13x forward EBITDA estimates. The top four companies in the space dominate marketshare and have strong moats insulating the business, which we believe will continue. We remain neutral as the market swiftly re-rated shares after the sale, and we view valuation as fair. We lift our 2026 EPS from $0.50 to $0.65 and 2027's from $0.55 to $0.76.
