Jefferies analyst Randal Konik downgraded Topgolf Callaway to Hold from Buy with a price target of $12, down from $40. The firm says anticipated revenue and expense synergies between Topgolf and the core Callaway have not materialized. Further, the company’s quality of earnings has been on the decline, while the accumulation of debt raises concerns about Topgolf s ability to sustain and grow its business effectively, the analyst tells investors in a research note. As such, Jefferies believes the company’s prospects are increasingly uncertain.
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