Wunderlich Securities Sees Currency As Increasing Concern For Callaway Golf Co.

In a report published Friday, Wunderlich Securities analyst Rommel Dionisio reiterated a Hold rating and $8.00 price target on

. In the report, Wunderlich Securities noted, “Due partly to shifted timing of shipments to 3Q from 4Q, Callaway Golf (ELY) delivered 3Q results well in excess of consensus expectations. The company raised earnings guidance slightly for the full year but, citing adverse currency impact, instituted preliminary sales guidance for 2015E of just 1-2% growth (5-6% in constant currency), below consensus expectation of 6% growth. Potential market share gains from upcoming introductions of new Big Bertha products could certainly drive upside to such guidance, but we would await channel check feedback confirming that before becoming more bullish on the stock. We maintain our Hold rating and price target of $8, derived using an EV/2015E EBITDA multiple of 9.5x.” Callaway Golf Co. closed on Thursday at $7.15.