UPDATE: Imperial Capital Initiates Outperform, $7 on Callaway Golf Company on Impending Turnaround

Imperial Capital initiates its coverage on Callaway Golf Company

with an Outperform rating and price target of $5.57. Imperial Capital comments, "After struggling in recent years, partially due to internal missteps and poor brand messaging, we believe Callaway appears well positioned for a turnaround and a return to profitability longer term following the hiring of Chip Brewer, formerly of Adams Golf, as President and CEO in March. A simplified operating model and renewed focus on its core golf club and golf ball business combined with strong innovation and improved marketing efforts should lead to market share gains in the coming years, in our view. While a full turnaround may require some patience, with the stock price 24% below its 52-week high, we believe recent weakness is mostly discounted in the price and the risk/reward scenario appears favorable at current levels." ELY closed at $5.57 on Thursday.