Shares of Topgolf Callaway rallied in premarket trading on a report that said the company is for sale and that a South Korean strategic investor is “in the running,” Raymond James tells investors in a research note. The firm “wouldn’t put too much credence” in a transaction at this point, as there’s been no mention of it from any other media sources, the premium doesn’t appear overwhelming, the Topgolf acquisition was just three years ago, and the company has not commented on any potential transaction. At the same time, the firm, which has an Outperform rating on Topgolf Callaway shares, believes a separation of the businesses could make strategic sense, as they appear to offer little in the way of synergies.
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