Callaway Golf’s stock shoots up toward 10-year high after bullish analyst call
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%.