TopGolf has been one of the most exciting entrances into the golf industry since its introduction in 2000. Whether TopGolf brings new people to the game of golf or converts them to traditional golfers, it has become a go-to entertainment venue in its own right.

TopGolf’s flagship venue on the Las Vegas strip in a partnership with MGM Resorts International (NYSE: MGM) has helped create significant brand awareness; the company plans to open 10 new locations per year with plans of international expansion and potential talks of smaller locations at airports and office buildings. A TopGolf venue is planned for Metro Detroit in 2018.

Related Link: Callaway CFO: Media's Portrayal Of 'Golf's Demise Is Way Overplayed'

Callaway Stake

Callaway Golf Co(NYSE: ELY)'s 15-percent stake in TopGolf was a keen investment to help the company diversify itself from an otherwise struggling golf equipment business.

With just a $54 million initial investment, according to a golf industry update from Imperial Capital analyst George Kelly, Callaway’s stake in the company is now worth $400 million, almost double the value that Benzinga reported the stake was worth just a year ago. This new valuation puts TopGolf approximate total valuation north of $2.7 billion.

With Callaway growing market share considerably in 2017, Imperial Capital maintains an Outperform rating on the company with a $16 price target.

The stock closed at $13.21.

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