Why TopGolf Callaway Brands Stock Is Rising Wednesday
Portfolio Pulse from Adam Eckert
Topgolf Callaway Brands Corp (NYSE:MODG) shares are rising following a report that the company is considering a sale, with a South Korean strategic investor potentially acquiring it for about $2.98 billion. This comes as TopGolf Callaway's market cap was approximately $2.64 billion as of the last close. The company plans to sell Callaway Golf and spin off its TopGolf subsidiary. Additionally, Topgolf Callaway's revenue has grown at an average rate of 31.33% annually over the past five years, with an average one-year price target from analysts at $17, indicating a 9.11% expected upside in 2025.
March 20, 2024 | 1:47 pm
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Topgolf Callaway Brands Corp is considering a sale, potentially to a South Korean investor for about $2.98 billion, which is higher than its current market cap. The company's revenue has been growing steadily, and analysts have a positive outlook for its future.
The news of a potential sale for a value higher than its current market cap is likely to generate positive sentiment among investors, driving up the stock price in the short term. The company's strong revenue growth and positive analyst outlook further support this potential price increase.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100