Analyst Sees Strong Year Ahead for Callaway Golf Stock

There is plenty of short covering potential, too

Deputy Editor
Jan 3, 2022 at 10:07 AM
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Callaway Golf Company (NYSE:ELY) stock, which was a Schaeffer's top stock pick for 2021, is up 1.9% to trade at $27.97 at last check. According to CNBC, the golf equipment name was made a "top pick" at Compass Point, with the analyst in coverage predicting operational growth across all Callaway's businesses this coming year.

On the charts, ELY has had a volatile past few months, though the stock appears to have reclaimed familiar support at the $27 region as well as its 20-day moving average. Year-over-year, the equity has tacked on 14.5%. 

Though shorts have been jumping ship, short interest still represents 6.9% of the stock's available float. In other words, it would take six days to buy back these bearish bets, at ELY's average pace of trading. 

The brokerage bunch is already overwhelmingly bullish on Callaway Golf stock. Of the 13 analysts in coverage, 11 carry a "buy" or better rating, with two a lukewarm "hold." Plus, the 12-month consensus price target of $41.50 is a 51.2% premium to last night's close.

 

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