) to sell from buy.
Analyst Timothy Conder says he believes shares will be dead money until evidence emerges of: a reversal of wood marketshare losses, stabilization or improving wood margins; improved Top-Flite golf-ball retail inventory levels, retail ball share, and improvement in the Japanese golf market. Also, he thinks Callaway needs continued integration and efficiency savings from the purchase of Top-Flite.
Conder now sees 43 cents 2004 EPS and 75 cents in 2005. He figures the stock has potential downside to $9 to $10 with little basis for upside catalyst until Spring 2005, when sell-through and pricing trends begin to materialize.