Gilford Securities Reiterates Buy, $9 PT on Callaway Golf

Gilford Securities reiterates its Buy rating and $9 price target on Callaway Golf ELY as the company sheds non-core business and narrows its focus to clubs and balls. Gilford Securities says, "Over the last several weeks Callaway Golf ELY has, in order a) divested the Ben Hogan line to Perry Ellis; b) Sold Top-Flite to Dicks Sporting Goods for $20MM cash, and; c) Turned over all distribution channels in the western hemisphere Including sporting goods, big box retailers, green grass, specialty retailing and e-commerce to Perry Ellis. The point of these moves is clear. In any good turnaround strategy, refocusing on core brands is essential to success." ELY closed at $6.42 a share yesterday.