Investors needs to purchase the dip on Topgolf Callaway, according to Bank ofAmerica Analyst Alexander Perry restated his buy ranking on the stock and a rate target of $22 per share. That target indicates benefit of more than 62% from Thursday’s close. The stock climbed up more than 1% onFriday Topgolf shares have actually been under pressure in the previous week, down more than 3%, following a fire at a Launch Technologies factory in Taiwan– among the business’s golf ball providers. At least 9 individuals were eliminated. MODG mountain 2023-09-22 Tough week for MODG The fire raised issue over the worldwide supply of golf balls, which put pressure on Topgolf shares. However, Perry believes the business will have the ability to alleviate the effect from the fire. “Importantly, MODG believes ‘it will be able to mitigate most, if not all, of the impact to Callaway Golf’s golf ball business by shifting supply to its Chicopee plant and other suppliers,'” stated Perry in a Friday note, describing a remark made by the business following the occurrence. “Also, the fire should not meaningfully impact Topgolf range ball supply or venue openings given ” existing stock levels and alternate supply sources.” To make certain, Topgolf shares were having a hard time even prior to the fire. Year to date, the stock is down 30%.– CNBC’s Michael Bloom contributed reporting.
