Assessing Topgolf Callaway Brands: Insights From 7 Financial Analysts

Topgolf Callaway Brands MODG has been analyzed by 7 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Topgolf Callaway Brands, presenting an average target of $12.57, a high estimate of $17.00, and a low estimate of $10.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 31.27%.

Investigating Analyst Ratings: An Elaborate Study

A comprehensive examination of how financial experts perceive Topgolf Callaway Brands is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Topgolf Callaway Brands. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Topgolf Callaway Brands compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Topgolf Callaway Brands's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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Delving into Topgolf Callaway Brands's Background

Topgolf Callaway Brands Corp is a modern golf and active lifestyle company that provides world-class golf entertainment experiences, designs and manufactures premium golf equipment, and sells golf and active lifestyle apparel and other accessories through brands such as, Topgolf, Callaway Golf, Odyssey, TravisMathew, Jack Wolfskin, OGIO and Toptracer. The company's reportable segments are; Topgolf, Golf Equipment and Active Lifestyle. Majority of the revenue is generated from its Topgolf segment which is predominantly comprised of service revenues and expenses from the company operated Topgolf venues, Toptracer ball-flight tracking technology, and WGT digital golf game. Geographically, majority of the revenue for the company is derived from United States.

Topgolf Callaway Brands: A Financial Overview

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Decline in Revenue: Over the 3 months period, Topgolf Callaway Brands faced challenges, resulting in a decline of approximately -1.86% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Topgolf Callaway Brands's net margin is impressive, surpassing industry averages. With a net margin of 5.36%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Topgolf Callaway Brands's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.59% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Topgolf Callaway Brands's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.68% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Topgolf Callaway Brands's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.77.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.