UPDATE: DA Davidson Reduced PT to $6.50 on Callaway Golf Company on Cautious Outlook

DA Davidson reiterated its Neutral rating on Callaway Golf Company

and lowered its price target from $7 to $6.50. DA Davidson commented, "While another guidance revision is disheartening, we do not believe 2H12 results are indicative of 2013 prospects. Rather, we are encouraged by management's determination to exit 2012 with clean inventories and a streamlined business structure. We look forward to hearing additional details on 2013 product launches, marketing initiatives, and potential for profitability on a lowered expense structure in the coming months. However, given intensely competitive industry dynamics and uncertainty around the magnitude of a 2013 topline recovery, we hesitate to recommend shares at this point." Callaway Golf Company closed at $5.96 on Thursday.