Callaway Golf stock price target raised to $23 from $20 at J.P. Morgan
Callaway Golf stock price target raised to $23 from $20 at J.P. Morgan
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Callaway Golf stock price target raised to $23 from $20 at J.P. Morgan
Shares of Callaway Golf Co. shot up 7.8% toward a near 11-year high in morning trade Friday, after the golf-gear maker beat first-quarter profit and sales expectations by wide margins. The stock is headed toward the highest close since July 18, 2007. Of the 12 analysts surveyed by FactSet, 7 raised price targets after the results, lifting the average target to $19.32, which is 6.7% above current levels. KeyBanc Capital analyst Brett Andress raised his price target to $21 from $17, saying the "considerable early season traction at retail" is very likely to be sustained in the coming months. J.P. Morgan's Steven Zaccone bumped up his target to $20 from $19, saying he was encouraged by the strength of Rogue club sales and the U.S. golf market's growth of 9.5% the past year. The stock has run up 52.5% the past 12 months, while the S&P 500 has gained 11.5%.
Shares of Callaway Golf Co. jumped late Thursday after the maker of golf clubs and other golf-related products reported first-quarter profit and sales well above Wall Street expectations. Callaway said it earned $63 million, or 65 cents a share, in the quarter, compared with $26 million, or 27 cents a share, in the year-ago period. Sales rose 31% to $403 million, compared with $309 million a year ago. Analysts polled by FactSet had expected earnings of 51 cents a share on sales of $372 million. The company also raised its 2018 guidance, saying it expects 2018 net sales between $1.17 billion and $1.19 billion, compared with a prior guidance of sales between $1.12 billion to $1.14 billion. Its EPS expectations increased to between 77 cents and 82 cents for the year, compared with a previous expectation of EPS between 64 cents and 70 cents. Callaway shares ended the regular trading day up 0.6%.
Shares Callaway Golf Co. shot up 4.8% in premarket trade Wednesday, putting them on track to open at a 10-year high, after a bullish note from SunTrust RH, which cited positive results from a survey of off-course retailers. Analyst Michael Swartz raised his price target to $19 from $17 while reiterating his buy rating. "Based on our conversations with retailer's, [Callaway Golf's] product momentum continues, in earnest, across clubs and balls," Swartz wrote in a note to clients. He said the new Rogue line appears to be doing "just as well, if not better," at retail than last year's successful Epic line launch. Swartz added that he was encouraged to see Callaway pick up "meaningful" shelf space at retailers for both balls and apparel this year. The company reports first-quarter results on April 26. The stock is set to open at the highest level seen since Feb. 1, 2008. Separately, Swartz also raised his stock price target at golf products maker Acushnet Holdings Corp. to $26 from $24. Callaway's stock has soared 21.5% year to date through Tuesday, while Acushnet shares have run up 14.0% and the S&P 500 has slipped 0.6%.
Callaway Golf stock price target raised to $19 from $17 at SunTrust RH
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Callaway Golf Co. engages in the manufacture and distribution of golf equipment and accessories. It operates through the following segments: Golf Clubs, Golf Balls, and Gear, Accessories, and Other. The Golf Clubs segment comprises of Callaway Golf woods, hybrids, irons and wedges, Odyssey putters, including Toulon Design putters by Odyssey, packaged sets and sales of pre-owned golf clubs. The Golf Balls segment designs, manufactures, and sells Callaway Golf and Strata golf balls. The Gear, Accessories, and Other segment consists of soft goods products which include golf apparel and footwear, golf bags, golf gloves, travel gear, headwear and other golf-related accessories, retail apparel sales from the firm's joint venture in Japan, and OGIO branded products. The company was founded by Ely Reeves Callaway, Jr. in 1982 and is headquartered in Carlsbad, CA. (See Full Profile)
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