Topgolf Callaway price target lowered to $17 from $20 at Roth MKM

Roth MKM lowered the firm’s price target on Topgolf Callaway to $17 from $20 after its Q2 revenue miss but keeps a Buy rating on the shares. Given the tough outlook, it is “smart” to review the company’s Topgolf business as it could help unlock significant value despite a challenging operating environment, the analyst tells investors in a research note. The firm adds that Topgolf still continues to generate strong four-wall economics with 34% 4-wall margin, 20% return on gross investment, and significantly higher cash-on-cash return, as well as offering a “long unit runway”.