Roth Capital notes that Topgolf Callaway (MODG) announced the sale of 60% of Topgolf for $770M of net proceeds. The deal is expected to close in Q1 2026. While the firm would have preferred an outright sale, it is “pleased nonetheless” and would take advantage of “the surprising negative market reaction.” In Roth’s view, Topgolf Callaway is inexpensive, especially given the various levers that could drive material EBITDA growth. The firm’s Buy rating and $14 price target on the stock are unchanged.
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