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Topgolf Callaway initiated with an Underweight at Morgan Stanley

Morgan Stanley analyst Megan Alexander initiated coverage of Topgolf Callaway with an Underweight rating and $12 price target. The analyst sees negative revision risk given limited topline visibility in uncertain consumer spending environment. Topgolf ‘s leverage and free cash flow “add to concerns,” driving one of the worst risk-adjusted returns in the sector, the analyst tells investors in a research note.

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