Gilford Securities Reiterates Buy, $9 PT on Callaway Golf

Gilford Securities reiterates its Buy rating and $9 price target on Callaway Golf (NASDAQ: ELY) as the company sheds non-core business and narrows its focus to clubs and balls.

Gilford Securities says, "Over the last several weeks Callaway Golf (symbol: ELY) has, in order a) divested the Ben Hogan line to Perry Ellis; b) Sold Top-Flite to Dicks Sporting Goods for $20MM cash, and; c) Turned over all distribution channels in the western hemisphere Including sporting goods, big box retailers, green grass, specialty retailing and e-commerce to Perry Ellis. The point of these moves is clear. In any good turnaround strategy, refocusing on core brands is essential to success."

ELY closed at $6.42 a share yesterday.