Consumer
Topgolf Downgraded to Sell on Fear Spinoff Comes ‘Too Late’
- Raymond James cuts rating to underperform from outperform
- Stock has fallen more than 40% since Topgolf acquisition
A Topgolf location in Oxon Hill, Maryland.
Photographer: Kent Nishimura/BloombergThis article is for subscribers only.
Slowing sales at Topgolf Callaway Brands Corp.’s namesake driving ranges and a hefty debt load that threatens to frighten off buyers spurred Raymond James to slash the company’s rating.
Analyst Joseph Altobello double downgraded Topgolf Callaway, cutting his recommendation to underperform from outperform, making him just the second analyst among the 14 tracked by Bloomberg to back selling the shares. After notching a 1.6% slide Friday, the stock’s slump for the year deepened to 22%.