Topgolf Callaway coverage transitioned with an Overweight at KeyBanc

KeyBanc transitioned coverage of Topgolf Callaway to who rates the stock with an Overweight rating and $27 price target. The company is uniquely positioned to backstop moderate softness in core golf equipment and apparel, while its Topgolf asset’s ability to continue to command moated growth through the sport’s accelerated off-course proliferation should also be a positive, the analyst tells investors in a research note. Despite the leverage of 3.8-times net debt to FY22 EBITDA, KeyBanc has a "more sanguine" near term view of Topgolf’s path to positive free cash flow.