Commenting on Topgolf Callaway (MODG) Brands’ announcement that it will sell a 60% stake in its Topgolf and Toptracer business to Leonard Green, Jefferies analyst Randal Konik says that a $1.1B Topgolf deal is a win for Topgolf Callaway, driving business simplification, sharpening focus on Callaway’s core golf equipment platform, and eliminating valuation and capital-intensity overhangs. $770M net proceeds bolster flexibility for debt paydown and reinvestment, while a 40% stake preserves upside, the firm highlights. Jefferies argues that strategic clarity, reinforced by a pure-play golf strategy and a rebrand to Callaway, positions Topgolf Callaway to fully capitalize on strong golf industry tailwinds. The firm has a Buy rating on Topgolf Callaway with a price target of $11 on the shares.
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