UPDATE: Wunderlich Securities Initiates Coverage on Callaway Golf Co. with Hold Rating, $8 PT on Mixed Factors

In a report published Friday, Wunderlich Securities analyst Rommel Dionisio initiated coverage on

with a Hold rating and $8.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Callaway Golf Co. (ELY) with a Hold rating and a price target of $8, which is derived using a 9x EV/2015E EBITDA multiple, in line with the peer group average. Callaway Golf appears to have all the makings of a classic turnaround story: a well-established brand name in golf, a slowly but surely rebounding industry sector, a revamped lineup of new products, and a proven CEO who successfully turned around another golf company prior to joining Callaway. We would await more tangible retailer feedback as next year's new products are announced before becoming more constructive on the stock, but if Callaway can regain market share and the competitive promotional environment can stabilize, there could be significant upside in the stock from current levels.” Callaway Golf Co. closed on Thursday at $7.39.