Callaway Golf stock dips on analyst downgrade

Shares of Callaway Golf Co. slipped Thursday after an analyst said the company's major new product launch has received a lukewarm reception from golfers.

Callaway Golf recently introduced the I-MIX line of interchangable shafts and clubheads, and according to Rommell Dionisio of Wedbush Morgan Securities, the product is not selling as well as hoped.

"Retailers primarily cited the high price and considerable shift in buying behavior required as the major reasons why the I-MIX has not gained popularity thus far," the analyst wrote in a note.

Dionisio added that competition in the "highly profitable" product category is growing. Additionally, poor spring weather and a slowdown in discretionary spending are also taking their toll on the entire industry.

"A flat or negative trend in rounds played generally has the most adverse impact on the balls business, unfortunate timing given that Callaway is launching major updates to its premium ball models this spring."

Officials at the Carlsbad, Calif.-based company weren't immediately available to comment.

In May the company reported 21 percent growth in its first-quarter profit, narrowly beating analyst estimates, but warned that its full-year earnings and sales will likely fall toward the low end of its previously issued guidance range.

Dionisio trimmed his profit estimates and also slashed his price target on the stock by $5 to $13. Callaway Golf shares declined 19 cents, or 1.5 percent, to $12.31. Earlier the stock set a 52-week low of $12.