Topgolf Callaway Brands could be due for big gains over the next several months as its breakup into two separate companies gets underway, according to Jefferies. Analyst Randal Konik upgraded the stock to buy from hold and increased his price target to $13 from $11, which implies 65.4% upside potential from Tuesday’s close. The call comes as shares of the golf and active lifestyle company have plummeted nearly 45% over the past year. Over the past six months, they are down more than 47%. MODG 1Y mountain MODG, 1-year “While TG fundamentals are weak, and MODG has suffered misexecution, shares appear oversold,” the analyst wrote. “With a separation ahead, and [sum of the parts] ~2x current share price, MODG offers strong value, we believe. Despite recent [management] doubts, history shows a deep understanding of golf [equipment], and tailwinds in golf are robust.” Looking ahead, Konik pointed to the company being in the process of spinning off its Topgolf business, a move that’s expected to take hold in the second half of this year . Following the spinoff, he anticipates that Callaway could generate $278 million in adjusted EBITDA in 2026, meaning a two-year compound annual growth rate of 6%. “The Topgolf segment, which was once viewed as a promising asymmetric upside opportunity amongst traditional golf stocks, has instead become a source of asymmetric downside,” the analyst also said. “This shift in perception has been driven by the disappointing performance in [same-store sales] growth, which has overshadowed the gains in the core Callaway business.” Konik also noted that golf has been reaching new levels of popularity. In October, the analyst estimated that rounds nationwide were up 11.5%, their largest year-over-year increase since 2020. Konik’s bullish move joins five other analysts out of the 14 on Wall Street who have a strong buy or buy rating, according to LSEG data. Meanwhile, six analysts have a hold rating. Additionally, its average target of around $14 reflects almost 82% upside ahead. Shares jumped in premarket trading Thursday on the heels of the move, gaining nearly 9%.