Topgolf Callaway downgraded to Equal Weight from Overweight at Stephens

Stephens downgraded Topgolf Callaway to Equal Weight from Overweight with a price target of $13, down from $24. The Topgolf SVS outlook is softer than anticipated in Q4 and into early 2024 and the long-term cash flow is below previous expectations, the analyst tells investors. While the firm continues to believe that Topgolf is undervalued within the broader valuation of the whole company, it doesn’t see a near-term catalyst for unlocking value given softer near-term expectations, though longer term it continues to believe this combination of assets does position the company well for the “blurring lines of on-course and off-course golf.