Jason Kempin/Getty Images Entertainment

Topgolf Callaway Brands Corp. (NYSE:MODG) is sized up favorably by Bank of America after reporting same-venue sales increased 11% in Q4.

BofA analyst Alexander Perry and team reiterated a Buy rating on the leisure stock based in part in the strong momentum for MODG's corporate events business.

Looking ahead, Perry pointed to multiple tailwinds for MODG that it expects to lead to an increase in golf participation, including the 11 new Topgolf venues, the new Netflix show Full swing and the general trend of COVID participants appearing to be sticky - as noted by U.S. on-course participation growing by 500K in 2022 despite the tough comparisons to 2020-2021.

The firm kept a Buy rating on MODG and hiked its price target to $32, which works out to a multiple of 11X to 12X the 2024 adjustde EBITDA estimate.

The Seeking Alpha Quant Rating on Topgolf Callaway is Hold.