) to buy from hold.
Analyst Timothy Conder says he thinks Callaway will soon move to eliminate losses from its ball operations via outsourcing or by exiting the golf ball category. Several sources indicate Callaway's recent efforts to purchase the ball operations of Spalding (Top Flite, Strata, Spalding brands) have not materialized. Absent the elimination of losses from the golf ball division, he thinks Callaway shares are fairly valued. He sees 97 cents 2003 earnings per share, $1.05 for 2004, and has a $16.50 target.