This golf stock is a buy even after fire at key supplier facility, Bank of America says

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Bank of America says investors should take advantage of the current price drop on Topgolf callaway. Alexander Perry, an analyst at Bank of America, reiterated that he believes the stock is a buy and set a $22 price target. This target represents a gain of over 62% since Thursday’s closing price. Stocks rose more than 1% Friday. Topgolf’s shares are down over 3% in the last week after a fire in a Launch Technologies plant in Taiwan, one of its golf ball suppliers. At least nine people died. MODG mountain 202309-22 A tough week for MODG. The fire caused concern about the global supply and put pressure on Topgolf’s shares. Perry believes that the company can mitigate the effects of the fire. In a note on Friday, Perry referred to a statement made by Callaway Golf following the fire. “Modg believes that it will be able ‘to mitigate most, if no all, of Callaway Golf’s business’ by shifting the supply to its Chicopee facility and other suppliers’,” he said. The fire shouldn’t have a significant impact on Topgolf venue openings or range ball supplies, given the “current inventory level and alternative supply sources.” Topgolf’s shares had been struggling before the fire. The stock has dropped 30% in the past year. Michael Bloom, CNBC’s reporter, contributed to this report.