Analysts: Callaway A Bargain

Bloomberg's Brooke Sutherland talks to analysts about the relative "bargain" Callaway appears to be as CEO Chip Brewer attempts to turn the company around.

Thanks to reader cpmy for the tip.

The Callaway brand and the Carlsbad, California-based company’s foothold in golf equipment could lure Nike Inc. (NKE), said Grace & White Inc., which also sees Kering SA, owner of the Cobra brand, as a potential buyer. Private-equity firms also may be drawn by the chance to carry out Brewer’s turnaround plan on their own, said Gilford Securities Inc.

In golf, Callaway is “the biggest, best-known brand name out there available for an acquirer,” Casey Alexander, New York-based director of equity research and a special-situations analyst at Gilford, said in a phone interview. Even after the rally, it “can still be considered quite a bargain today.”