Callaway sales drive soaring share price
Callaway Golf has proved investors right with quarterly results and third-quarter sales guidance that topped even the best estimates. Shares are up as much as 20pc, adding to their 41pc year-to-date gain through last Thursday's close.
SunTrust analyst Michael Swartz rates the stock buy and boosts his price target to $24 from $20 after "yet another strong quarter/guidance raise". He said Callaway "has the wind at its back" and expects strong revenue growth and margin expansion to continue, driven in part by "an expected major iron launch, operating efficiencies, and synergies from recent acquisitions".
Roth Capital's Dave King also rates the stock buy, with a new price target of $24 ($20), while Cowe's John Kernan said Callaway's second-half outlook "looks conservative". Consensus estimates for 2019 "need to be revised higher", said Kernan who rates Callaway market perform, and boosts his price target to $21 ($18). (Bloomberg)
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