JPMorgan analyst Steven Zaccone says that while Callaway Golf's acquisition of Jack Wolfskin brings risk, the pullback in the shares on the announcement is overdone. The acquisition increases Callaway's exposure to higher growth, margin accretive lifestyle categories with long-term potential benefits from growing the "under-invested JW brand significantly larger," Zaccone tells investors in a research note. The analyst, however, lowered his price target for Callaway Golf shares to $23 from $27. The deal skews too far from Callaway's core capabilities given no overlap in golf and the JW brand is a "show-me" top-line story given a recent stagnant growth profile, says Zaccone. Further, he sees added risk to Callaway's earnings growth profile given dilution from the deal in fiscal 2019. Nonetheless, the analyst keeps an Overweight rating on Callaway.