One day after Rocco Mediate made a run for it at the U.S. Open shares of his sponsor, CallawayGolf dropped. Should you buy the dip?
KeyBanc analyst Scott Hamann reiterated his Buy rating on Callaway despite Mediate’s second place finish. We were curious to find out why -- so we invited him on the show!
Following is a summary of the main points made by Scott Hamann KeyBanc capital markets vice president and equity research analyst on Fast Money.
I did some proprietary channel checks on this stock and found the sentiment is very negative on Callaway, explains Hamann. Then, I talked with golf equipment distributors and people making sales in the industry and found that sales are not as bad as the market is pricing in.
Also I think it’s important to look at Callaway as a global growth story. This company is going to make more than 50% of total sales next years over seas. And those are more profitable.
Looking forward we have a positive outlook for the summer.