Investors should buy the dip on Topgolf Callaway , according to Bank of America. Analyst Alexander Perry reiterated his buy rating on the stock and a price target of $22 per share. That target implies upside of more than 62% from Thursday’s close. The stock climbed more than 1% on Friday. Topgolf shares have been under pressure in the past week, down more than 3%, following a fire at a Launch Technologies factory in Taiwan — one of the company’s golf ball suppliers. At least nine people were killed . MODG mountain 2023-09-22 Tough week for MODG The fire raised concern over the global supply of golf balls, which put pressure on Topgolf shares. However, Perry thinks the company will be able to mitigate the impact 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,'” said Perry in a Friday note, referring to a comment made by the company following the incident. “Also, the fire should not meaningfully impact Topgolf range ball supply or venue openings given “current inventory levels and alternate supply sources.” To be sure, Topgolf shares were struggling even before the fire. Year to date, the stock is down 30%. — CNBC’s Michael Bloom contributed reporting.
