Hole In One: Imperial Capital Adds Callaway Golf To Best Ideas List

On Thursday, Imperial Capital's Equity and Industry Analysis team presented a list of Best Ideas in Equity Research with companies representing an average upside of 32 percent. Imperial Capital included Callaway Golf ELY on it's list, as its turnaround story gains momentum. On April 25, Imperial Capital analyst Robert Rosenhaus maintained an Outperform rating and $10.50 price target on Callaway. Rosenhaus wrote, "We believe Callaway appears well positioned for a return to profitability in 2014 following the hiring of Chip Brewer, formerly of Adams Golf, as president and CEO in March 2012. A simplified operating model, reduced cost structure, and renewed focus on its core golf club and golf ball business, combined with strong innovation and improved marketing efforts, should lead to further market share gains in the coming years, in our view." With the company's turnaround gaining momentum, new products are performing well and the Callaway brand is winning market share. Imperial Capital added that foreign currency headwinds and a cold and wet spring in 2013 provide a good and "relatively easy comparisons." Callaway Golf was included on Imperial Capital's Top 8 Investment Opportunities from April 4. Shares of Callaway Golf closed at $8.71 on Thursday.